Business

Break-even calculator

Find the sales volume needed for unit contribution to cover fixed costs.

Break-even occurs when total contribution from units sold covers fixed costs.

Break-even volume

500 units

Estimated break-even revenue: $25,000.00.

Contribution per unit$20.00
Contribution margin40%
Fixed costs$10,000.00

Actual results can differ because of sales mix, stepped costs, taxes, discounts, waste, and capacity constraints.

Plain-language method

Each sale contributes toward fixed costs.

Subtract variable cost per unit from selling price to find contribution per unit. Divide fixed costs by that contribution and round up to the next whole unit.

If variable cost equals or exceeds selling price, every unit contributes nothing or creates a loss, so no finite break-even volume exists.

Break-even units = fixed costs ÷ (selling price − variable cost per unit)

Results update instantly and stay on your device. Review the assumptions above before using an estimate for a financial decision.