Enter your monthly fixed costs, your selling price and your variable cost per unit to see exactly how many units — and how much revenue — you need before anything drops to the bottom line. Part of our free 2025 tax year calculator set for Canadian businesses.
Your cost structure
How it works. Every sale contributes its price minus its variable cost toward the bills that arrive whether you sell or not. Break-even is your fixed costs divided by that contribution margin, rounded up to whole units — the point where the month stops costing you money.
Break-even revenue per month
$0
0 units a month at a 0% contribution margin
An estimate is a starting point. Get your real number.
This calculator uses published rates. Your actual position depends on the credits, deductions and structure behind your numbers.
- A professional tax accountant reviews your figures, not a formula
- Fixed quote before any work starts
- You pay after you approve the filing
Let's connect
Send your details and we'll confirm your exact position.
How break-even works
Costs come in two kinds: fixed costs like rent, insurance, salaries and software that arrive every month regardless of sales, and variable costs like materials, freight and payment processing that scale with each unit sold. What is left of each sale after its variable cost — the contribution margin — is the only money available to pay the fixed bills, so break-even is simply fixed costs divided by contribution margin per unit. The same arithmetic answers the more useful question of a target profit: units needed for a given profit equal fixed costs plus that profit, divided by the contribution margin — so with a $40 margin, an extra $10,000 of monthly profit is 250 more units, not a mystery.
The number is only as good as the cost split behind it. If your books do not separate fixed from variable spending cleanly, start with our bookkeeping service, and use the markup & margin calculator to make sure the per-unit margin you are typing in here is the one you actually earn.
What this calculator does not cover
It models one product at one price. A business selling several products at different margins needs a weighted-average contribution margin, and a sales mix that shifts toward the low-margin line moves the break-even point without any cost changing. Fixed costs are also stepped in real life — a second lease, another hire or a bigger insurance policy raises the bar as volume grows — and the model assumes you sell everything you produce. Treat the result as a planning floor, and have someone who keeps clean books confirm the inputs before you commit to a price or a lease on the strength of it.
| Metric | Value |
|---|---|
| Contribution margin | $40 |
| Margin ratio | 40% |
| Break-even units | 1,250 |
| Break-even revenue | $125,000 |
Rates reviewed for the 2025 tax year by Udit Gupta, Certified Tax Accountant. Federal and provincial rates change annually, and this tool is an estimate for planning rather than tax advice. Confirm current figures before relying on them for a filing.
Other free calculators
Every calculator uses the same 2025 tax year rates and needs no signup.
Corporate Tax Calculator
Estimate the federal and provincial tax your Canadian corporation owes.
Open calculatorSalary vs Dividend Calculator
Compare paying yourself salary or dividends from your corporation.
Open calculatorCCA Calculator
Work out the CCA claim on an asset by class — accelerated first year or steady-state on the remaining balance.
Open calculatorMarkup & Margin Calculator
Turn a cost into a selling price by target margin or markup, and see both percentages so they never get confused.
Open calculator