Break-Even Calculator
How many units you must sell to cover your fixed costs, from price and variable cost.
- Contribution margin per unit$10.00
- Break-even units500
- Revenue at break-even$12,500.00
Inputs used
- Fixed costs$5,000.00
- Price per unit$25.00
- Variable cost per unit$15.00
About this calculator
Every unit sold contributes its price minus its variable cost toward covering fixed costs; that difference is the contribution margin. Break-even is simply fixed costs divided by contribution margin, rounded up to whole units — the point where total contribution first covers rent, salaries, tooling and everything else that doesn't scale with volume.
If the result looks unreachable, there are only three levers: raise the price, cut the variable cost per unit, or cut fixed costs. Small price changes are usually the most powerful, because every cent goes straight into the margin.
The price must exceed the variable cost per unit — if each sale loses money, no volume can break even and the calculator will report an error.
Quick reference
Break-even units by fixed costs and selling price
Units to sell to cover fixed costs, assuming a variable cost of $15 per unit.
| Fixed costs | $20 | $25 | $30 | $40 | $50 |
|---|---|---|---|---|---|
| $2,000 | 400 | 200 | 134 | 80 | 58 |
| $5,000 | 1,000 | 500 | 334 | 200 | 143 |
| $10,000 | 2,000 | 1,000 | 667 | 400 | 286 |
| $20,000 | 4,000 | 2,000 | 1,334 | 800 | 572 |
| $50,000 | 10,000 | 5,000 | 3,334 | 2,000 | 1,429 |
| $100,000 | 20,000 | 10,000 | 6,667 | 4,000 | 2,858 |
Frequently asked questions
How do I calculate my break-even point?
Divide fixed costs by the contribution margin per unit (price minus variable cost), then round up to whole units. At $5,000 in fixed costs, a $25 price and a $15 variable cost, the margin is $10, so you break even at 500 units — about $12,500 in revenue.
What is contribution margin?
It is the price of a unit minus the variable cost of making or delivering that unit. Every unit sold contributes that amount toward fixed costs, and once total contribution covers the fixed costs you have broken even.
What if the price is below the variable cost per unit?
Then every sale loses money and no sales volume can ever break even, so the calculation has no answer. The only fixes are to raise the price or cut the variable cost until each unit contributes something positive.
How can I lower my break-even point?
There are three levers: raise the price, cut the variable cost per unit, or cut fixed costs. A price increase is usually the most powerful because it feeds straight into the contribution margin, dividing into the same fixed costs fewer times.
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Results are informational only — not financial, medical or legal advice.