Compute the units and revenue you need to sell to break even on fixed and variable costs.
Fixed Costs (USD) — Cost per unit USD. Includes direct expenses; verify with invoices for accuracy. Example: 50000 USD.
Price per Unit (USD) — Price charged USD. Compare to market to ensure competitiveness while covering costs. Example: 50 USD.
Variable Cost per Unit (USD) — Cost per unit USD. Includes direct expenses; verify with invoices for accuracy. Example: 30 USD.
Break-Even Units
2,500
Break-Even Units — Calculated outcome. Derived from your inputs via the displayed formula; use to plan.
Break-Even Revenue
$125,000.00
Break-Even Revenue — Monetary amount USD. Represents cash flow, cost, or value; compare across scenarios.
Contribution Margin per Unit
$20.00
Contribution Margin per Unit — Monetary amount USD. Represents cash flow, cost, or value; compare across scenarios.
What this means
Each unit contributes its price minus variable cost toward fixed costs. Dividing fixed costs by that contribution margin gives the units needed.
The break-even point is where revenue exactly covers costs. Selling beyond it means profit; selling below it means loss.
Formula
break-even units = fixed costs ÷ (price − variable cost per unit) | revenue = units × price
Worked examples
FAQ
What if price equals variable cost?
Contribution is zero and you can never break even — the calculator flags this state.
Do taxes affect break-even?
Break-even computed here is pre-tax operating break-even; taxes add a further target.