About this Break-Even Calculator
Break-Even Calculator estimates how many units must be sold for unit contribution to cover the fixed cost entered.
Formula or method
Break-even units = Fixed costs ÷ (Price per unit − Variable cost per unit).
Example
Fixed cost 1000, price 25 and variable cost 15 gives 100 break-even units.
Common uses
- Compare simple product scenarios.
- Estimate a unit break-even point.
- Understand contribution margin per unit.
How to use this tool
- Enter the values or text requested by the calculator.
- Choose units or options when the tool provides them.
- Select the calculation button and review the result.
- Use the formula, example and notes on this page to check whether the result fits your situation.
Important note
The selling price must be greater than variable cost per unit for a positive contribution margin.
Estimate only: Money-related results are mathematical estimates. They are not financial, tax, legal, credit or lending advice.
Frequently asked questions
Does it include every business expense?
Only the fixed and variable costs you enter are represented.
Why must price exceed variable cost?
If each sale does not contribute positively toward fixed costs, a finite unit break-even point is not produced.