A break-even chart plots revenue and total costs against units sold. Where the two lines cross is the break-even point: below it you make a loss, above it a profit. To make one, list units sold in steps, work out revenue (units × price) and total cost (fixed costs + units × variable cost) for each, and draw both as lines on one chart. The free break-even calculator draws a profit chart for you from four numbers.
A chart makes the break-even point easier to explain than a formula: you can see how far sales have to go, how fast profit grows after that, and what a price change does. This guide shows what goes on a break-even chart, a worked example with the data table, and how to build one in Google Sheets or Excel.
- Three lines: fixed costs (flat), total costs (rising from the fixed-cost level) and revenue (rising from zero).
- Break-even point: where revenue meets total costs. Units = fixed costs ÷ contribution margin per unit.
- Example: $3,000 fixed costs, $40 price, $19 variable cost and fees: break-even at 142.86, so 143 units ($5,714 of sales).
- Profit chart: a simpler version plots profit alone, crossing zero at break-even.
- Make it fast: the free calculator draws it; Sheets or Excel take about ten minutes.
What does a break-even chart show?
Units sold go along the bottom (x-axis) and money up the side (y-axis). The chart usually has these parts:
| Part | What it shows | How it's drawn |
|---|---|---|
| Fixed cost line | Costs that don't change with sales: software, rent, a set ad budget | Flat line |
| Total cost line | Fixed costs plus variable costs for each unit sold | Starts at the fixed-cost level and rises |
| Revenue line | Units sold × price | Starts at zero and rises more steeply |
| Break-even point | Where revenue equals total cost | Where the two lines cross |
| Loss area | Sales below break-even | Gap where cost is above revenue |
| Profit area | Sales above break-even | Gap where revenue is above cost |
| Margin of safety | How far expected sales are above break-even | Distance along the x-axis |
What is the break-even formula behind the chart?
Break-even units = fixed costs ÷ (price − variable cost per unit). The bracket is the contribution margin: what each sale adds towards fixed costs once its own costs are paid. Break-even revenue = break-even units × price.
Variable costs are everything that grows with each sale: the product, packaging, shipping you pay and percentage fees. If you're not sure of your margin, start with the free profit margin calculator or our guide on how to calculate profit margin.
Break-even chart example with data
A small shop has $3,000 of fixed costs a month. It sells one product at $40. Each unit costs $15, and fees take 10% of the price ($4), so variable cost is $19 and the contribution margin is $21. Break-even = $3,000 ÷ $21 = 142.86, so it needs 143 sales, about $5,714 of revenue.
| Units sold | Revenue ($40 each) | Total cost ($3,000 + $19 each) | Profit or loss |
|---|---|---|---|
| 0 | $0 | $3,000 | −$3,000 |
| 50 | $2,000 | $3,950 | −$1,950 |
| 100 | $4,000 | $4,900 | −$900 |
| 143 | $5,720 | $5,717 | +$3 (break-even) |
| 200 | $8,000 | $6,800 | +$1,200 |
| 250 | $10,000 | $7,750 | +$2,250 |
| 300 | $12,000 | $8,700 | +$3,300 |
Plot the revenue and total cost columns against units and the lines cross just above 142 units. Each unit sold after that adds $21 of profit. If the shop expects 200 sales, its margin of safety is (200 − 142.86) ÷ 200, about 29%: sales can fall that far before it makes a loss.
How do you make a break-even chart in Google Sheets or Excel?
- In column A, list units sold in even steps from 0 to about twice your expected break-even (0, 50, 100 … 300).
- Put your fixed costs, price and variable cost per unit in three cells, for example E1, E2 and E3.
- In column B (Revenue), enter
=A2*$E$2and fill down. - In column C (Total cost), enter
=$E$1+A2*$E$3and fill down. - Optionally add column D (Fixed costs) as
=$E$1, so the flat line shows. - Select columns A to D and insert a line chart (Insert > Chart in Google Sheets; Insert > Line or Scatter chart in Excel). Make sure units are used as the x-axis, not as a data series.
- Add a title, label the axes “Units sold” and “$”, and mark the crossing point with a label or a vertical line at the break-even units.
A line chart spaces every row equally along the x-axis, whatever the numbers say. If your unit steps aren't even (0, 10, 100, 500), use a scatter chart with straight lines so the distances are true.
What is a profit chart, and when is it better?
A profit chart (also called a profit-volume chart) plots one line: profit at each level of sales. It starts at minus your fixed costs, crosses zero at break-even, and rises by the contribution margin for every unit. It's easier to read in a pitch or a team update, because the question “when do we make money?” is answered by one crossing. The break-even calculator draws this chart with your break-even point and profit target marked, and shows your margin of safety when you enter expected sales.
Enter fixed costs, price, cost per unit and fees to get break-even units, revenue and a profit chart. Free, in your browser.
Open the calculator7 days free · 50 credits · No credit cardHow do price and cost changes move the break-even point?
A chart is most useful for “what if” questions. Using the example above:
| Change | Contribution margin | Break-even units |
|---|---|---|
| As above | $21.00 | 143 |
| Price up to $45 (fees 10%) | $25.50 | 118 |
| Price down to $36 (fees 10%) | $17.40 | 173 |
| Unit cost down to $12 | $24.00 | 125 |
| Fixed costs up to $4,000 | $21.00 | 191 |
- Raising the price steepens the revenue line and moves the crossing left.
- Cutting unit cost flattens the total cost line and does the same.
- Adding fixed costs lifts the whole cost line and moves break-even right.
- A discount cuts margin per sale more than it looks; see how to calculate discount percentage.
Mistakes to avoid on a break-even chart
- Leaving out fees and shipping. Marketplace commission, payment fees and shipping you pay are variable costs and often bigger than the product cost.
- Mixing periods. Use monthly fixed costs with monthly unit sales, or yearly with yearly.
- Treating ads as one thing. A set monthly budget is a fixed cost; a cost per order is variable. For ad-specific break-even, see break-even ROAS.
- Forgetting the chart is a straight-line model. Real prices, discounts and costs change with volume, so treat the crossing as an estimate and redo it when numbers change.
Next, use your break-even to set prices with how to price handmade products and markup vs margin. Every pricing and profit guide is in our selling online hub.
Frequently asked questions
What is a break-even chart?
A chart of revenue and total costs against units sold. The point where the lines cross is the break-even point, where the business makes neither a profit nor a loss.
How do you find the break-even point on a graph?
Find where the revenue line crosses the total cost line, then read the units sold straight down on the x-axis and the revenue straight across on the y-axis.
What are the three lines on a break-even chart?
Fixed costs (flat), total costs (starting at the fixed-cost level and rising) and revenue (starting at zero and rising).
Can I make a break-even chart for free?
Yes. Google Sheets is free, and AiArter's break-even calculator draws a profit chart with no sign-up.
What is the margin of safety on a break-even chart?
The distance between expected sales and break-even sales. As a percentage: (expected − break-even) ÷ expected.
Product photo costs sit in your break-even too. Make clean listing images and lifestyle scenes from your own photos, on credits.
Start free trialSee pricing7 days free · 50 credits · No credit card. Trial images carry a small “Made with aiarter” mark; paid plans export clean files you can use commercially.
