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pricing calculator

Break-Even Price Calculator

Find the minimum price you need to charge to cover all costs on a product or service, designed for digital product creators, course sellers, freelancers, and solo business owners. The calculator factors in fixed costs, variable costs per unit, expected sales volume, and target profit to show your price floor and profitable pricing range.

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

The break-even price is calculated by dividing total fixed costs by the expected number of units sold and adding the variable cost per unit. Fixed costs include one-time expenses like course production, equipment, software, design, and your own labor. Variable costs include per-unit platform fees, payment processing, hosting, or materials that scale with each sale. The calculator can also add a target profit margin on top, revealing the price needed to hit a specific profit goal rather than just breaking even.

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.