Finance

Break-Even Calculator

Find how many units you must sell to cover your costs.

Calculated Output

Break-even units (units) 1,000

Break-even revenue ($) 25,000

Contribution per unit ($) 10

Formula: units = fixed costs ÷ (price − variable cost)

Step-by-Step Breakdown

1. Values used:

2. Fixed costs = 10,000 $

3. Price per unit = 25 $

4. Variable cost per unit = 15 $

6. Break-even units = 1,000units

7. Break-even revenue = 25,000$

8. Contribution per unit = 10$

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The math behind it

Each unit contributes (price − variable cost) toward fixed costs. Break-even units = fixed costs ÷ contribution per unit.

$10,000 fixed, $25 price, $15 variable → $10 contribution → 1,000 units ($25,000 revenue).

What if contribution is zero or negative?

You can never break even — the price must exceed the variable cost per unit.