Break-even Calculator
Estimate break-even units and revenue from fixed cost and per-unit contribution margin.
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Browser-basedWhat this tool does
Estimate the minimum whole units needed to cover fixed costs using break-even units = fixed costs ÷ (selling price per unit − variable cost per unit). The calculator rounds units up and reports revenue at that whole-unit threshold.
If fixed costs are 12,000, price is 50, and variable cost is 30, contribution margin is 20 per unit; 12,000 ÷ 20 = 600 units and modeled break-even revenue is 30,000.
The result is a single-product planning estimate. It assumes constant price and unit cost and does not model product mix, stepped fixed costs, capacity limits, tax, financing, refunds, or timing.
What you can do with this tool
Returns 500 units and 25,000 revenue.
What to check before relying on the result
- Assumes one product, constant price and variable cost, and no capacity, demand, tax, or financing constraints.
- Use scenario comparisons rather than treating one result as a forecast.
How to use
- 1
Enter fixed costs for one consistent planning period, such as a month or year.
- 2
Enter selling price and variable cost for one unit using the same currency and tax basis.
- 3
Confirm that selling price exceeds variable cost so contribution margin is positive.
- 4
Review the rounded-up unit threshold and associated revenue, then stress-test changes in price or cost.
Use Cases
Estimate how many units must sell before modeled contribution covers setup, equipment, rent, or campaign costs.
Change unit cost or selling price one at a time to see how contribution margin moves the break-even threshold.
Use fixed costs from one month, quarter, or year to create a threshold for the same reporting period.
Tips & Tricks
Put costs that do not change with each unit in fixed costs. Put materials, transaction fees, packaging, and other per-unit amounts in variable cost.
Each unit covers fixed cost by selling price minus variable cost. A high selling price does not help if per-unit costs rise by the same amount.
Demand, product mix, returns, taxes, capacity, stepped costs, and cash timing can move the real break-even point away from this static estimate.
FAQ
What formula does the break-even calculator use?
It divides fixed costs by contribution margin per unit, where contribution margin is selling price minus variable cost. The result is rounded up to a whole unit.
Why must selling price exceed variable cost?
When price is equal to or below variable cost, every additional unit contributes zero or a loss toward fixed costs, so this model has no finite break-even volume.
How is break-even revenue calculated?
The tool multiplies the rounded-up break-even units by selling price. This can be slightly higher than the mathematical fixed-cost threshold because partial units cannot be sold.
Does this support multiple products or changing costs?
No. It assumes one product with constant price, variable cost, and fixed cost for the selected period. A product mix requires a weighted contribution-margin model.
Can I use this result as financial advice?
No. The result is an informational estimate based on the values you enter. Check the math, fees, taxes, and local rules before making financial decisions.
Useful next steps
Open a nearby browser tool when you need to validate, convert, or reuse the result.