Break-even Calculator

Estimate unit sales and revenue needed to cover fixed and variable costs.

Use fixed costs, unit price, and unit variable cost to estimate when contribution covers fixed expenses.

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Business cost assumptions

Fixed costs

Selling price per unit

Variable cost per unit

Your estimate will appear here

Complete the fields and calculate to see a detailed result.

Understanding break-even

Each sale contributes price minus variable cost toward fixed costs. Units are rounded up because a fraction of a unit normally cannot be sold.

Formula and methodology

Contribution = price − variable cost. Break-even units are fixed costs ÷ contribution, rounded up. Break-even revenue is rounded units times price.

Worked example

With $10,000 fixed costs, a $50 price, and $30 variable cost, contribution is $20 or 40%. Break-even is 500 units and $25,000 revenue.

Assumptions and limitations

Price, unit costs, and mix are assumed constant. Capacity limits, stepped costs, taxes, timing, and inventory changes are excluded. Price must exceed variable cost.

Frequently asked questions

Why round units up?

The next whole unit is required to fully cover costs.

What belongs in fixed costs?

Costs that do not change with modeled volume during the period.

What if price equals variable cost?

There is no contribution, so break-even cannot be calculated.

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