Break-Even Calculator

A unit break-even calculation estimates how many units must be sold for total contribution to equal fixed costs. Contribution per unit is selling price minus variable cost per unit.

The tool models one product with constant price, constant variable cost, and known fixed costs. It does not forecast demand, cash flow, taxes, capacity, financing, or mixed-product sales.

Break-even units can clarify the sales volume implied by a cost structure and help compare simple scenarios. It is not evidence that the volume is achievable or that the business is financially viable.

Enter nonnegative fixed costs, selling price, and variable cost. Price must exceed variable cost. The result is rounded to two decimals; real indivisible units generally require rounding up.

Contribution per unit = price − variable cost. Break-even units = fixed costs ÷ contribution per unit.

Fixed costs

Costs assumed not to change with unit volume in the modeled range.

Variable cost

Incremental cost assigned to each unit.

Price

Revenue per unit before modeled deductions.

A result of 400.25 means at least 401 whole units under the assumptions. Fixed costs of zero produce zero units. If contribution is zero or negative, the calculator returns no break-even because each additional unit does not cover fixed costs.

Misclassifying costs or ignoring fees and returns can materially understate the threshold. Use accounting records and scenario ranges before commitments.

With $10,000 fixed costs, $40 price, and $15 variable cost, contribution is $25 and break-even is 400 units.

Use break-even units as one simplified planning scenario. Validate costs, demand, capacity, and cash flow before making a financial commitment.