Estimate how many units you must sell before fixed costs are covered.
Overview
Break-even is the sales volume where contribution margin covers fixed costs and profit is zero.
Enter fixed costs, selling price, and variable cost per unit. The tool returns units and revenue needed to break even.
If price sits at or below variable cost, contribution is non-positive and break-even is undefined—raise price or cut variable cost first.
Steps
Rent, salaries, and other costs that do not change with volume.
Selling price per unit.
Cost that scales with each unit sold.
Read break-even units and revenue.
Lower price to see how many more units you need.
Math
breakEvenUnits = fixedCosts / (price − variableCost)
Contribution per unit is price minus variable cost. Divide fixed costs by contribution for units.
Worked cases
Contribution $13; 50,000/13 ≈ 3,846 units
About 3,846 units (~$96,154 revenue).
Contribution $18; 50,000/18 ≈ 2,778
About 2,778 units.
30,000/13 ≈ 2,308
About 2,308 units.
Why use this
Questions