Break-Even & Markup Calculator

How many units (or dollars of revenue) you need to cover fixed costs — and how margin converts to markup when you set prices.

By The PiggyMath Editorial Desk Last updated August 10, 2026 ✓ Independently verified against published IRS figures

How this is calculated

Break-even units = fixed costs ÷ (price − variable cost per unit). Break-even revenue = units × price. Margin is profit ÷ price; markup is profit ÷ cost. Conversion: markup% = margin% ÷ (100% − margin%), and margin% = markup% ÷ (100% + markup%).

Costs & price

Fixed costs per period ($)Rent, software, insurance, salary draw you must cover.

Variable cost per unit ($)

Selling price per unit ($)

Margin ↔ markup

Gross margin (%)

Markup on cost (%)

Units to break even

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Break-even revenue

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Contribution / unit

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Margin → markup

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Markup → margin

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Profit vs units

Crosses zero at break-even

Pricing for freelancers

Treat “units” as billable packages, retainers or product SKUs. Fixed costs should include the tax set-aside and unpaid time you still have to fund — the freelance rate calculator works backwards from target income to an hourly or day rate.

Margin is not markup

A 40% margin is a 66.7% markup. Confusing the two underprices work. Use both converters above before quoting.

Frequently asked questions

What counts as a unit?

Anything you sell repeatedly — a product, a packaged service, or one billable day. Keep the definition consistent with your variable cost.

Should tax be in fixed costs?

Yes for planning. Self-employed tax is real cash leaving the business even though it is not a COGS line.

Is break-even the same as profit?

No — break-even only covers costs. Price above it (or sell more units) to create profit.

Sources

SBA — Pricing and break-even basics

Every formula on this page is checked against an independent implementation before publication. How we check our math →