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Free sales target calculator

Know the sales line between losing money and earning it.

Turn average price, variable cost, and fixed costs into a concrete break-even target. Then compare your forecast with both survival and the operating profit you actually want.

Quick answer

Break-even is a cost-coverage target, not a profit goal.

Each sale contributes its selling price minus variable cost toward fixed costs. Once total contribution equals fixed costs, operating profit is zero. A real profit target requires additional contribution and therefore additional sales.

Contribution per sale = selling price − variable cost per sale

Break-even sales = fixed costs ÷ contribution per sale

Reviewed August 15, 2026

Step 1

Set one consistent sales period

Average sale economics
$

Average pre-tax revenue from one order, job, visit, subscription, or unit.

$

Direct labor, materials, fees, fulfillment, and other costs caused by one additional sale.

Period costs and goals
$

Costs that remain even when sales change. Use one month, quarter, or other consistent period.

sales / period

Your realistic forecast for the same period used for fixed costs.

$

Operating profit desired after the fixed and variable costs entered, before tax and financing.

This is a single-average-sale model. A mixed product or service business needs a representative weighted average and stable sales mix. Decide deliberately whether fixed owner compensation belongs in fixed costs; owner distributions, tax, debt principal, and cash timing are not automatically included.

Understand this decisionHow many sales does your business need to break even?Classify fixed and variable costs, calculate a target-profit sales level, and understand where the model stops.Read the guide →

Do not stop at zero

Break-even keeps the doors open. It does not reward the owner.

At break-even, sales have covered the variable and fixed costs in the model, but operating profit is zero. If owner compensation is missing from fixed costs, even that target may understate what the business must earn.

Use the target-profit result to separate a survival threshold from a worthwhile business goal. Then pressure-test whether the necessary volume is realistic within capacity and demand.

Review the exact formulas →

Make the target credible

Pressure-test the inputs

What belongs in fixed costs?

Include costs that do not meaningfully change with one more sale during the chosen period: rent, base payroll, software, insurance, professional services, and other overhead. Include fixed owner compensation if the target is meant to support it.

What belongs in variable cost per sale?

Include direct labor, materials, packaging, payment fees, commissions, shipping, and similar costs caused by delivering one additional sale. Use an average that reflects the sales mix expected during the period.

Why are whole sales rounded upward?

The mathematical answer may contain a fraction, but many orders, jobs, and units are indivisible. Rounding down would knowingly leave the business short of the cost or profit target.

Can I use this for several products or services?

Only with a defensible weighted average price and variable cost based on a stable sales mix. If margins vary widely or the mix changes, calculate major offers separately or use a more detailed sales-mix model.

Does break-even mean the business has enough cash?

No. Profit and cash timing are different. Debt principal, inventory purchases, customer payment delays, tax payments, owner distributions, and capital spending can create a cash shortage even when the period is profitable. Cash runway belongs in a separate decision tool.