Break-Even & Margins Calculator

Your break-even point is the monthly revenue needed to cover all your costs: fixed costs ÷ contribution margin. With €5,000 of fixed costs and a 40% margin, you need €12,500 of sales per month. Use the calculator to find your break-even point, safety margin and estimated operating result.

How break-even is calculated

The formula is simple: break-even (€/month) = monthly fixed costs ÷ contribution margin. Fixed costs are what you pay regardless of sales — rent, salaries, retainers, insurance, subscriptions. The contribution margin is the share of each sale left after paying variable costs. If you know your average selling price and variable cost per unit, the calculator also gives break-even in units: fixed costs ÷ (price − unit variable cost). Below break-even every month adds to losses; above it, every euro of margin becomes profit.

Contribution margin: the number that decides everything

Contribution margin = (price − variable costs) ÷ price. Do not confuse it with gross margin: gross margin deducts only the cost of goods sold, while contribution margin deducts all variable costs — sales commissions, shipping, packaging, platform and payment fees. Because it is more complete, it is the right margin for break-even analysis; using gross margin makes your break-even look lower than it really is.

Safety margin and estimated result

If you enter your current monthly revenue, the calculator shows your safety margin — how far sales can drop before the business starts losing money — and the estimated operating result (revenue × margin − fixed costs), a simplified approximation of monthly EBITDA. The practical reading: every €1,000 of sales above break-even generates additional profit equal to the contribution margin — with a 40% margin, roughly €400 per €1,000.

How to lower your break-even point

There are three levers: cut fixed costs (renegotiate rent, retainers and subscriptions), increase the margin (raise prices or reduce variable costs per unit) and improve the sales mix by prioritising higher-margin products and services. Tracking margins, costs and cash flow monthly is the core of HVR's external CFO service — start with the CFO diagnostic or explore our other management tools.

Frequently asked questions

What is the break-even point?

The sales level at which the business covers all its costs — no profit, no loss. Monthly fixed costs divided by the contribution margin.

How do I calculate the contribution margin?

(Selling price − variable costs) ÷ selling price. A product sold for €50 with €30 of variable costs has a 40% contribution margin.

What is the difference between gross margin and contribution margin?

Gross margin deducts only the cost of goods sold; contribution margin deducts all variable costs — commissions, shipping, packaging, fees — and is the right one for break-even.

What is EBITDA?

Earnings Before Interest, Taxes, Depreciation and Amortization — a rough indicator of the operation's cash-generating capacity.

How can I lower my break-even point?

Cut fixed costs, increase the contribution margin (prices or variable costs) and prioritise higher-margin products and services.