Break-even Calculator

Calculate break-even in units or MRR for service, ecommerce, or SaaS.

Last updated: March 6th, 2026

What this tool does

Calculates break-even in units (service or ecommerce) or in MRR/customers (SaaS). For service and ecommerce you enter fixed costs, variable cost per unit, and price per unit. For SaaS you enter fixed costs, gross margin, and ARPA. Output shows break-even quantity or revenue and contribution margin. Educational only; not financial advice.

When to use it

Planning a service business or side gig and want to know how many jobs or hours to break even
Pricing a product and checking if you can cover fixed costs
Modeling SaaS and seeing how many customers or how much MRR you need
Comparing scenarios (e.g. different price or variable cost)

Inputs explained

Mode – Service (units), Ecommerce (units), or SaaS (customers/MRR).
Fixed costs per month – Rent, salaries, software, anything that does not vary with units sold. See fixed costs.
Variable cost per unit – Cost per unit sold (service/ecom only). See variable cost.
Price per unit – What you charge per unit (service/ecom).
Gross margin % – (SaaS) Revenue minus direct costs as a percent. See gross margin.
ARPA – (SaaS) Average revenue per account per month. See ARPA.

How to use it

Select mode: Service, Ecommerce, or SaaS.
Enter the inputs that appear for that mode (all in consistent units, e.g. monthly).
Click Calculate.
Review break-even units or MRR and contribution margin. Use scenarios or share link to compare.

Common mistakes

Mixing monthly and annual numbers (e.g. annual fixed costs with monthly price)
Setting price less than or equal to variable cost (you never break even)
Using revenue instead of gross margin for SaaS

Use it with AI

This tool is not AI-powered. It is a calculator. You can use the results with an AI assistant in these ways:

Paste your break-even result and ask for a one-page memo summarizing what to do next.
Ask an AI to suggest ways to lower fixed costs or improve contribution margin.
Use the AI Toolkit and Founder Ops AI Workflow to tie break-even into weekly planning.

Explore the AI Toolkit and Vendor Eval Scorecard for more workflows.

Related tools

Related glossary terms

FAQ

What is contribution margin?

Price minus variable cost per unit. Must be positive to break even.

Why does price less than variable cost fail?

You lose money on each sale. You cannot break even.

Is this financial advice?

No. Educational only.

Inputs

Output

Shows break-even and contribution margin .

Educational only.

Pro features (coming soon)

Pro unlocks unlimited scenarios.