Break-Even Calculator
Find how many units you need to sell to cover your costs.
Your answer
Turn on JavaScript to use this calculator. The formula is explained below so you can work it out by hand.
How this calculator works
Each sale contributes the difference between its price and its variable cost toward your fixed costs. That's the contribution margin.
Break-even units = fixed costs ÷ (price − variable cost per unit)
Add a profit target and the calculator shows how many units cover fixed costs and that profit. Keep the time period consistent: monthly fixed costs give you monthly units.
Example
Fixed costs are $3,000 a month. You sell at $25 with $10 of variable cost, so each sale contributes $15. Break-even is $3,000 ÷ $15 = 200 units, or $5,000 in sales per month.
Category: Small Business