Break-Even Calculator

At a contribution margin of 20 per unit, 10000 of fixed costs break even at 500 units (25000 of revenue).

How it works

• Subtracted the unit variable cost from the unit price to get the contribution margin per unit.
• Divided the fixed costs by the contribution margin and rounded up to a whole unit.
• Multiplied the break-even units by the unit price for the break-even revenue.

units = fixedCosts / (price − variableCost) = 10000 / (50 − 30) = 500

• Assumes one product, a constant unit price and a constant unit variable cost.
• This is an illustration for information only, not accounting, tax or financial advice.

Methodology

1. Compute the contribution margin per unit as price − variable cost.
2. Divide the period fixed costs by the contribution margin and round up to the next whole unit.
3. Multiply the break-even units by the unit price for the break-even revenue.
4. If the variable cost is greater than or equal to the price, no break-even point exists and the input is rejected.

Usage

1. Enter the total fixed costs for the period.
2. Enter the unit selling price and the unit variable cost.
3. Read the contribution margin, the break-even units and the break-even revenue.

Examples

These are examples, not current values: they use fixed inputs, while the interactive tool computes live results in your browser.

Product with a 20 contribution margin

{
  "fixedCosts": 10000,
  "pricePerUnit": 50,
  "variableCostPerUnit": 30
}

Already profitable on unit one

{
  "fixedCosts": 0,
  "pricePerUnit": 50,
  "variableCostPerUnit": 30
}

Low-margin service

{
  "fixedCosts": 8000,
  "pricePerUnit": 40,
  "variableCostPerUnit": 38
}

Limitations

Disclaimer

This calculator is an illustration for information only. It is not accounting, tax or financial advice, and it does not know your business's real cost structure or obligations. Verify the numbers against your own records and consult a qualified professional before acting on them.