Break-Even Calculator
Work out how many units you need to sell — and at what revenue — to cover your fixed costs.
How it works
Each unit sold contributes its selling price minus its variable cost — the contribution margin — toward covering fixed costs. Once enough units have been sold to cover fixed costs entirely, every further sale is profit. Break-even revenue is simply the break-even unit count multiplied by the selling price.
Break-Even Units = Fixed Costs ÷ (Price − Variable Cost)
Worked example
Fixed costs of $10,000, selling at $50/unit with a $30/unit variable cost:
- Contribution margin
- $50 − $30 = $20 per unit
- Break-even units
- $10,000 ÷ $20 = 500 units
- Break-even revenue
- 500 × $50 = $25,000
Frequently asked questions
Fixed costs stay roughly the same regardless of how much you sell — rent, salaries, insurance, loan repayments. Variable costs scale with each unit sold — materials, packaging, per-item shipping or commission. Break-even math only works if costs are sorted correctly between the two.