Calculation desk / pricing
Break-even Calculator
Estimate the whole units and revenue required to cover fixed and variable costs.
Break-even Calculator: Estimate the number of whole sales needed to cover a chosen set of fixed costs. Enter a selling price and variable cost per unit to see the contribution from each sale, the minimum unit count and the revenue at that count. Runs 100% locally in your browser with zero server file uploads.
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Break-even units
500
- Revenue at break-even
- $25,000.00
- Contribution per unit
- $20.00
Break-even units = fixed costs ÷ (price − variable cost)- Price and variable cost remain constant as volume changes.
- Units are rounded up because a partial unit cannot cover the remaining cost.
Formula and worked example
Break-even units = fixed costs ÷ (price − variable cost)
A worked example with sample values:
| Inputs | |
|---|---|
| Fixed costs | $10,000.00 |
| Price per unit | $50.00 |
| Variable cost | $30.00 |
| Results | |
|---|---|
| Break-even units | 500 |
| Revenue at break-even | $25,000.00 |
| Contribution per unit | $20.00 |
Contribution and the worked calculation
Contribution per unit = selling price − variable cost per unit. Break-even units = fixed costs ÷ contribution, rounded upwards. Revenue at that count = whole units × selling price. Fixed costs of 10,000, a price of 50 and variable cost of 30 give contribution of 20; 10,000 ÷ 20 = 500 units and 500 × 50 = 25,000 revenue.
The US Small Business Administration presents this single-product break-even relationship (https://legacy.sba.gov/business-guide/plan-your-business/calculate-your-startup-costs/break-even-point) and distinguishes fixed costs from costs that change with production. The whole-unit rounding here means the displayed revenue can sit just above the exact mathematical break-even point.
Choosing the cost period
Match the fixed-cost total to the time window you want to analyse: monthly rent belongs in a monthly model, while an annual contract needs an appropriate allocation. Keep the variable-cost input per unit, rather than entering the total variable expense for the entire period.
This estimate assumes every unit sells at the entered price and carries the entered variable cost. Quantity discounts, overtime, additional premises or unsold stock can change that relationship. A zero fixed-cost input returns zero units when contribution is positive; that does not imply the operation has no other expenses.
How to use it
- Enter values that cover the same scope and reporting period.
- Choose a display currency when the calculation includes money.
- Calculate, then review the formula and assumptions beside the result.
Privacy & limitations
Every value and calculation stays in your browser. This is a planning utility, not accounting, tax, legal, or investment advice. Verify material decisions in your source system and with an appropriate professional.
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Frequently asked questions
Why are break-even units rounded up?
You must sell enough complete units to cover all fixed costs. If fixed costs are 10,001 and each unit contributes 20, the exact quotient is 500.05 units, so the tool returns 501. Rounding down would leave some fixed costs uncovered.
What happens if variable cost equals the selling price?
Each sale then contributes nothing towards fixed costs, so there is no finite break-even unit count in this model. A price below variable cost is also rejected because additional sales increase the shortfall instead of covering it.
Can I combine products with different prices?
The inputs describe one product or a constant sales mix represented by a suitable average contribution. Changing the mix changes the result. Calculate products separately or build a weighted contribution estimate outside this tool before entering one representative price and cost.
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