CostBreak-even Calculator
Calculate how many units you need to sell to cover fixed and variable costs.
Enter values and press Calculate.
How this calculator works
Break-even units equal fixed costs divided by contribution margin per unit, where contribution margin is selling price minus variable cost.
How to use the result
Change one input at a time to compare scenarios. This helps you see which factor has the biggest effect on your total cost or savings.
Frequently asked questions
What are fixed costs?
Costs that do not change directly with each unit sold, such as rent or salaried overhead.
What are variable costs?
Costs that rise with each unit sold, such as materials, packaging or transaction fees.
What if variable cost is higher than selling price?
There is no positive contribution margin, so increasing unit sales will not produce a break-even point.
Use break-even analysis to test a business decision
Contribution margin is the selling price minus the variable cost for one unit. Dividing fixed costs by that margin estimates how many whole units must be sold before operating profit turns positive. Always round the unit result up: selling part of a unit rarely covers the remaining fixed cost.
A product selling for $45 with $27 of variable cost contributes $18 per sale. With $7,200 of monthly fixed costs, the business breaks even at 400 units. At 450 units, estimated operating profit is $900 before tax and financing costs.
Inputs that deserve a stress test
- Include payment fees, packaging, fulfillment and sales commissions in variable cost.
- Use the fixed costs for the same period as the sales target.
- Test a lower selling price and a higher variable cost to see the downside case.
- Separate cash-flow timing from accounting break-even; a profitable month can still have a cash shortfall.