Finance

Break-Even Calculator

Estimate the number of units needed to cover fixed and variable costs.

Results are provided for general informational use. Verify important financial, health or legal figures before relying on them.

About this Break-Even Calculator

The Break-Even Calculator estimates how many units must be sold before contribution from sales covers fixed costs. It is a planning tool for simple unit-based business models and pricing scenarios.

How the calculation works

Contribution per unit equals selling price minus variable cost. Break-even units equal fixed costs รท contribution per unit. The model assumes those values stay constant across the relevant sales range.

How to use it

  1. Enter fixed costs.
  2. Enter selling price and variable cost per unit.
  3. Calculate to estimate break-even units and revenue.

Practical example

With fixed costs of 10,000, a price of 50 and variable cost of 30, contribution is 20 per unit and break-even volume is 500 units.

Frequently asked questions

Does this include taxes?

Only if you include them in the fixed or variable cost inputs.

What if variable cost is higher than price?

There is no positive contribution margin, so the simple break-even model cannot produce a viable unit count.

Is the result exact?

It is an estimate based on the values and assumptions you enter.

Keep exploring

More Finance

View category โ†’