The break-even calculator finds how many units must be sold for revenue to cover fixed and variable costs. It also reports break-even revenue and unit contribution, a key measure for basic pricing and sales planning.
How to use this calculator
Enter total fixed costs, selling price per unit, and variable cost per unit. Contribution per unit is price minus variable cost. A zero or negative contribution cannot cover fixed costs, so the calculator flags it instead of producing a misleading result.
Formula & calculation method
Break-even units = fixed costs / (price − variable cost per unit)At break-even, total contribution equals fixed costs and profit is zero. Break-even revenue is the unit quantity multiplied by selling price. Fractional units are rounded up when a whole-unit sales target is needed.
Worked example
With 10,000 fixed costs, price 50, and variable cost 30, contribution is 20 per unit. Break-even is 500 units and revenue at that point is 25,000 before taxes or other unmodeled expenses.
Why this is useful
The output links pricing, cost structure, and sales volume in one simple model. It helps test whether a price increase or variable-cost reduction lowers the sales volume required to break even.
Limitations to keep in mind
The model assumes constant price and unit variable cost. Real businesses may have volume discounts, changing capacity, mixed products, stepped fixed costs, taxes, returns, and timing differences that require a more detailed analysis.
Frequently asked questions
What if variable cost exceeds price?
Each unit increases the loss, so no positive sales volume can break even under those assumptions.
Are fixed costs per month or per year?
Use any consistent period. The resulting units and revenue refer to the same period as the fixed costs entered.
Why round units up?
A whole-unit business cannot sell a fractional unit, so rounding up ensures contribution covers rather than falls just below fixed costs.