How to use it
- Enter fixed costs that do not change with unit volume.
- Enter the selling price and variable cost for one unit.
- Calculate the contribution margin and required break-even sales.
Break-Even Calculator
Estimate how many units must be sold to cover fixed and variable costs.
About the Break-Even Calculator
The break-even calculator estimates the sales volume where contribution from unit sales covers the entered fixed costs.
Formula
Contribution margin per unit equals price minus variable cost. Break-even units equal fixed costs divided by contribution margin. The unit result is rounded up before break-even revenue is calculated.
Example
With fixed costs of 10,000, a unit price of 50 and variable cost of 30, contribution is 20 per unit and the break-even point is 500 units or 25,000 in revenue.
Notes
The selling price must exceed variable cost. This simplified estimate assumes the entered price and costs stay constant across the calculated volume.