Finance
Break-Even Calculator
Calculate how many units you need to sell to cover your costs and break even on any product or business.
Break-Even Units
β
How It Works
Break-Even Units = Fixed Costs Γ· (Selling Price β Variable Cost). The denominator is your Contribution Margin per unit β the amount each sale contributes toward covering fixed costs.
Example
Fixed costs $10,000, variable cost $15/unit, selling price $45/unit β Contribution margin = $30 β Break-even = 334 units.
Frequently Asked Questions
What are fixed vs. variable costs?
Fixed costs stay the same regardless of production (rent, salaries, insurance). Variable costs change with production volume (materials, packaging, commissions).
What is contribution margin?
The revenue remaining after variable costs are subtracted. Each unit sold contributes this amount toward covering fixed costs and generating profit.
How do I lower my break-even point?
Reduce fixed costs, lower variable costs, or increase selling price. Raising prices often has the largest impact but must be balanced against demand.