Break-even Calculator
Estimate the minimum whole-unit sales needed to cover fixed costs using unit price and variable cost.
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Formula
Basic break-even units = ceil(fixed costs ÷ contribution per unit). Target units = ceil((fixed costs + entered target profit) ÷ contribution per unit). Contribution must be positive.
Worked example
With fixed costs of 5,000, a selling price of 50, and variable cost of 20, contribution is 30 per unit. 5,000 ÷ 30 = 166.67, so at least 167 whole units are needed.
What the result means
This is a simplified volume estimate assuming the same price and variable cost for each unit. It excludes capacity limits, product mix, changing costs, and taxes.
How to Use Break-even Calculator
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Key Features & Benefits
Break-even Calculator in your browser
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Clear business context
Estimate the minimum whole-unit sales needed to cover fixed costs using unit price and variable cost.
Frequently Asked Questions
Why are break-even units rounded up?
Units are whole items, so a fraction of a unit would not fully cover the entered fixed costs.
What if variable cost is at least the selling price?
Each sale then contributes zero or less toward fixed costs, so there is no finite break-even sales volume under these assumptions.
Key terms
- break-even point
- This is a simplified volume estimate assuming the same price and variable cost for each unit. It excludes capacity limits, product mix, changing costs, and taxes.