Break-even calculator
Break-even units = fixed cost / (price - variable cost), rounded up. Example: price 25,000, variable 10,000, fixed 3,000,000 needs 200 units.
Price per unit must be greater than variable cost.
Formula estimate only. Rates, taxes, and legal rules vary by jurisdiction.
What to know
The break-even page asks for a Price per unit, a Variable cost per unit and a Fixed cost, then returns the number of units at which revenue equals total cost. The formula is units = ceil(fixed / (price - variable)), where price minus variable cost is the contribution per unit.
Worked example: price 25,000, variable cost 10,000 and fixed cost 3,000,000 give a contribution of 15,000 and 3,000,000 / 15,000 = 200 units. With fixed cost 3,100,000 the division is 206.67, which the page rounds up to 207, since you cannot sell a fraction of a unit.
Price must exceed variable cost, otherwise the page shows an error because every sale would lose money. The starting values in the form deliberately fail this check until you set a price above the variable cost.
The three result lines are Required units, Contribution per unit and Fixed cost. Break-even revenue is simply the unit count times the price. The model assumes constant price and per-unit costs, so volume discounts, step-fixed costs and taxes need separate treatment.
A bakery with 2,400,000 of fixed cost, a 4,000 price and 1,500 variable cost needs 960 units, since the contribution is 2,500 and 2,400,000 / 2,500 = 960. Selling 1,200 units would leave 600,000 of profit, which is the 240 units above break-even times 2,500.
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How to use Break-even calculator
- Set Price per unit to 25,000.
- Set Variable cost / unit to 10,000.
- Enter Fixed cost 3,000,000.
- Read Required units, which shows 200, and the contribution per unit of 15,000.
Quick answers
Why does the page show an error right after opening?
The default price is lower than the default variable cost, so the unit contribution is negative. Raise the price or lower the variable cost.
Why is the result a whole number?
The page rounds up. 206.67 units means you must sell 207 to cover costs fully.
How do I get break-even revenue?
Multiply the Required units by the price. For 200 units at 25,000 that is 5,000,000.
Does fixed cost mean monthly or annual?
Whichever period you enter. The unit count then applies to that same period.