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pricing calculator

Break-Even Price Calculator

Find the minimum price you need to charge to break even on a product or service given fixed costs, variable costs, and expected sales volume.

Break-even analysis

Break-even price per unit$25
Total variable costs$7,500
Total costs (fixed + variable)$12,500

Break-even price = (fixed costs ÷ units) + variable cost per unit. At $25, selling 500 units covers all $12,500 in costs. Every dollar above break-even price is pure profit per unit.

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How this calculator works

Break-even price = (fixed costs ÷ units sold) + variable cost per unit. Add a target profit to find the price needed to hit a profit goal.

Useful scenarios

  • A digital product creator calculating the minimum price for a $5,000 course production cost with 200 expected sales at $15/platform fee per sale.
  • A solo business owner pricing a physical product with $3,000 in fixed equipment costs and $8 in materials per unit for an initial run of 500 units.
  • A freelancer determining the minimum project fee to cover $2,000 in fixed subscription costs and 20 hours of $50/hour labor.

FAQ

What's the difference between break-even price and break-even volume?

Break-even price answers 'what price covers my costs at X volume?' Break-even volume answers 'how many units do I need to sell at X price?' This calculator uses the price approach — enter your expected volume to find the price floor.

Should I include my own salary in fixed costs?

Yes. Your time is the most important fixed cost. Include a reasonable salary or draw as part of fixed costs. If you don't, your 'break-even' price may leave you losing money even though all external costs are covered.

How do platform fees affect break-even price?

Platform fees (Gumroad 10%, Etsy ~6.5%, course platforms 5–15%) are variable costs per sale. Include them in variable cost per unit. For a $50 product with 10% platform fee, that's $5 per unit in variable costs.