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Break-even Calculator

Find the sales volume and revenue needed to cover fixed and variable costs.

Break-even Inputs

The model assumes one product, stable unit economics, and fixed costs that do not change with volume.

Results computed instantly — your data never leaves your device.

Break-even Results

Real-Time

Break-even units

833.33

Break-even revenue

$83,333.33

Contribution margin / unit

$60.00

Selling price minus variable cost per unit.

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How to Use the Break-even Calculator

  1. 1

    Enter fixed costs for the period.

  2. 2

    Enter the selling price and variable cost for one unit.

  3. 3

    Check that the selling price exceeds the variable cost.

  4. 4

    Review the units and revenue needed to reach the break-even point.

Formula & Mathematical Basis

Break-even units = Fixed costs ÷ (Selling price per unit − Variable cost per unit)

Variable Key

F

Fixed costs for the selected period

P

Selling price per unit

V

Variable cost per unit

P − V

Contribution margin per unit

📝 The calculation assumes one product or a stable blended margin, constant unit economics, and no step changes in fixed costs.

Step-by-Step Examples

1

Covering operating costs

Scenario: A product has $50,000 of fixed costs, sells for $100, and has $40 of variable cost per unit.

  1. 1.Contribution margin is $100 − $40 = $60.
  2. 2.Divide $50,000 by $60 to obtain 833.33 units.
  3. 3.Round up to 834 whole units when planning physical sales.
  4. 4.Multiply the unit target by $100 to estimate break-even revenue.
✅ The business needs about 834 units to cover the modeled costs.

Practical Use Cases

  • Set a minimum sales target for a product launch.
  • Compare pricing or supplier-cost scenarios.
  • Explain the effect of contribution margin to a business team.

Common Pitfalls

  • Forgetting variable commissions, shipping, or payment fees.
  • Using a blended margin when the product mix changes materially.
  • Rounding units down when a whole-unit target is required.

Frequently Asked Questions

What if price equals variable cost?

There is no positive contribution margin, so the modeled business cannot recover fixed costs through unit sales.

Does break-even mean profitable?

No. It is the point where modeled revenue covers modeled costs; profit begins above that point.

Can this handle several products?

Use a weighted average contribution margin for a stable product mix, and interpret the result as an estimate.

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