Break-Even Pricing Calculator
Calculate the minimum price to cover costs plus desired profit at a given sales volume.
By Konstantin Iakovlev · Updated April 2026 · Source: SBA — Business Guide
Break-Even Price
$25.00
Target Price (with profit)
$31.00
Margin at Target
51.6%
Pricing Breakdown
| Break-Even Price | $25.00 |
| Target Price | $31.00 |
| Gross Margin at Target | 51.6% |
| Markup at Target | 106.7% |
| Break-Even Units | 313 |
| Total Revenue at Target | $15,500.00 |
Price Sensitivity
| $22.50 (-10% below break-even) | 33.3% margin | -$1,250.00 profit |
| $25.00 (Break-even price) | 40.0% margin | +$0.00 profit |
| $31.00 (Target price) | 51.6% margin | +$3,000.00 profit |
| $34.10 (+10% above target) | 56.0% margin | +$4,550.00 profit |
| $38.75 (+25% above target) | 61.3% margin | +$6,875.00 profit |
Volume Sensitivity
| 250 units | $7,750.00 revenue | -$1,000.00 profit |
| 375 units | $11,625.00 revenue | +$1,000.00 profit |
| 500 units | $15,500.00 revenue | +$3,000.00 profit |
| 625 units | $19,375.00 revenue | +$5,000.00 profit |
| 750 units | $23,250.00 revenue | +$7,000.00 profit |
Use the Break-Even Pricing Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How It Works
At what price does a product stop losing money? This calculator answers that by finding the minimum you must charge per unit to cover every cost and still hit your target profit at a given sales volume. With supply chain volatility still pushing material costs around in the 2026 market and inflation running near 3.5%, knowing that break-even point is the foundation for growing without quietly bleeding cash.
The engine applies a modified break-even formula: (Total Fixed Costs + Total Variable Costs + Desired Profit) / Sales Volume. Total Variable Costs come from multiplying your Variable Cost Per Unit by Sales Volume. What you get is a baseline unit price that already accounts for fixed overhead and per-unit expenses, before market dynamics enter the conversation.
Variable costs are easy to undercount, and the usual culprits are hidden line items such as shipping insurance and payment processing fees, the latter projected to climb 0.5% in 2026. Treat the figure this produces as a floor rather than a recommendation: demand, what competitors charge, and how customers perceive value all shape where your selling price should ultimately land.
Example: Launching a New Eco-Friendly Water Bottle in 2026
- 1 Input: Fixed Costs (Rent, Salaries, Marketing) = $15,000; Variable Cost Per Unit (Materials, Labor) = $4.50; Desired Profit = $5,000; Sales Volume = 2,000 units.
- 2 Calculation: Total Variable Costs = $4.50 (Variable Cost Per Unit) * 2,000 (Sales Volume) = $9,000. Total Costs + Desired Profit = $15,000 (Fixed Costs) + $9,000 (Total Variable Costs) + $5,000 (Desired Profit) = $29,000.
- 3 Intermediate Result: Total revenue needed to cover costs and desired profit = $29,000.
- 4 Final Result: Break-Even Price Per Unit = $29,000 / 2,000 units = $14.50. You must charge at least $14.50 per water bottle to cover all expenses and achieve your $5,000 profit target at a sales volume of 2,000 units.
Source: SBA — Business Guide · Last updated: April 2026
Frequently Asked Questions
How do you calculate break-even price?
What is the difference between break-even price and markup?
How many units do I need to sell to break even?
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