Feb 25, 2026 · 6 min read
Break-even Math for Digital Products
Use contribution margin to estimate when your product stops burning cash.
Contribution margin is the core
Break-even quality depends on accurate per-unit cost allocation and realistic pricing.
Separate fixed from variable cleanly
Misclassifying costs can produce optimistic break-even numbers and risky decisions.
Use multiple price scenarios
Test at least three price points before launch decisions.