How we calculate this
See methodology- Calculate how much profit each unit contributes after variable cost.
- Divide fixed costs by contribution margin per unit.
- Multiply break-even units by price per unit to get break-even revenue.
Break-Even Calculator
Break-Even Calculator
Calculate the units and revenue needed to break even.
Formula
Contribution margin per unit
Price per unit - Variable cost per unit Break-even units
Fixed costs / Contribution margin per unit Break-even revenue
Break-even units × Price per unit Worked example
If fixed costs are $5,000, price per unit is $50, and variable cost per unit is $30, here is the result.
- Contribution margin per unit is $50 - $30 = $20.
- Break-even units are $5,000 / $20 = 250.
- Break-even revenue is 250 × $50 = $12,500.
Frequently Asked Questions
What if price per unit is less than variable cost per unit?
Break-even cannot be reached because each unit sold is not contributing positive profit toward fixed costs.
Should I round break-even units up?
In real planning, yes. If the result is not a whole unit, you usually need to sell the next full unit.
Do fixed costs include owner salary?
Include any recurring cost you want the business to cover in the scenario you are planning.
Methodology and Trust Note
See full methodologyThese tools are designed to make the math visible, keep assumptions clear, and give you a practical planning result you can review quickly.
This calculator is for educational and planning purposes only. It does not replace professional financial, tax, accounting, or business advice.