Summary
Estimate unit sales and revenue required to cover fixed and variable costs.
Calculation details
The unit contribution margin must be positive. Fractional units indicate the mathematical threshold; operational plans may need to round up.
Formula
Break-even units = fixed costs / (price per unit - variable cost per unit).
Worked example
Worked example
A $20 contribution per unit requires 2,500 units and $125,000 revenue to break even.
How it works
Enter fixed costs, price per unit, and variable cost per unit. Contribution margin must be positive; fractional units are a mathematical threshold.
Frequently asked questions
What does the Break-even Calculator calculate?
The unit contribution margin must be positive. Fractional units indicate the mathematical threshold; operational plans may need to round up.
Should I use this result for financial reporting?
Use it as an estimate and verify reporting, accounting, tax, and legal treatment with qualified professionals.