Break-Even Calculator
Find the sales volume a business needs to cover its fixed costs for 2026 — the point where revenue exactly equals total cost, with neither a profit nor a loss. Break-even analysis rests on the contribution margin: what is left from each unit's selling price after its variable cost, which then goes toward covering fixed monthly costs like rent, salaries and insurance. Enter the fixed monthly costs, the price and variable cost per unit, the current monthly sales volume, and an optional target monthly profit, and the calculator returns the break-even point in units and dollars, how many units are needed to hit the target profit, and whether the current volume sits above or below break-even.
Estimate only for the 2026 tax year. Not tax, accounting or financial advice. Talk to RN Canada about your situation.
How it works
The calculator subtracts the variable cost per unit from the unit price to get the contribution margin per unit, then divides the fixed monthly costs by that margin to find the break-even volume in units; multiplying by the unit price gives the break-even revenue. Adding the target profit to the fixed costs before the same division gives the units needed to hit that profit level.
What the result includes
Results show the contribution margin per unit and as a percentage of price, the break-even volume in units and revenue, the units needed for the entered target profit, the current volume's profit or loss position relative to break-even, and a table of revenue, cost and profit at a range of sales volumes.
Assumptions
Assumes a single product or service with a constant unit price and variable cost, fixed costs that do not change with volume within the relevant range, and no step-changes in fixed costs (such as adding a second location). Businesses selling multiple products at different margins should run this per product line or use a blended average.
Frequently asked questions
The break-even point is the sales volume at which total revenue exactly equals total cost — fixed costs plus variable costs — so the business makes neither a profit nor a loss. Selling above that volume produces a profit; selling below it produces a loss.
Contribution margin is the selling price per unit minus the variable cost per unit — the amount each sale contributes toward covering fixed costs before any profit is made. A higher contribution margin means fewer units are needed to break even.
If the unit price is equal to or lower than the variable cost per unit, each sale loses money or breaks even on its own, so no volume of sales can ever cover the fixed costs. The calculator flags this as undetermined rather than showing a misleading number.
The calculator adds the entered target monthly profit to the fixed monthly costs, then divides by the contribution margin per unit — the same logic as break-even, but covering both fixed costs and the desired profit.
Yes. Treat each billable hour, project, or subscription as a "unit" with its own price and variable cost, and the same break-even logic applies.
Last reviewed: 2026-08-19. Sources: Canada Revenue Agency — Business income and expenses