Estimate the sales volume that covers costs
Enter your fixed costs, selling price per unit, and variable cost per unit. Fixed costs are costs you plan to recover over the period, such as rent or a project setup fee. Variable cost is the additional cost of each unit sold. Use the same currency and time scope for all three inputs. The result shows a whole-unit sales target, the revenue at that target, and the contribution each sale makes toward fixed costs.
How break-even is calculated
Contribution per unit = selling price − variable cost per unit. When contribution is positive, exact break-even units = fixed costs ÷ contribution per unit. The calculator rounds that figure up to the next whole unit, because a fractional unit generally cannot be sold. It then multiplies whole units by price to show revenue at the target. Contribution margin is contribution per unit divided by selling price, expressed as a percentage. At break-even, revenue covers the fixed costs and the variable costs of the units sold; it is not the same as profit.
Checked example
Suppose fixed costs are $5,000, each unit sells for $60, and variable cost is $30. Each sale contributes $30, giving an exact break-even volume of 5,000 ÷ 30 = 166.67 units. The whole-unit target is 167 units. Revenue at that volume is 167 × $60 = $10,020. Variable costs are 167 × $30 = $5,010, so total costs are $10,010; the extra $10 is the result of rounding up. At 166 units, revenue would be $9,960 against $9,980 in total costs, leaving a $20 shortfall.
Model limits
This is a one-product model with constant selling price and variable cost. It assumes every unit produced is sold and ignores taxes, discounts, capacity limits, changing costs, and mixed product margins. With fixed costs above zero, a price equal to or below variable cost provides no finite break-even target: each additional unit contributes nothing or loses money. With zero fixed costs, the calculator shows zero units to recover initially, but a negative contribution still means every sale loses money. Inputs must be finite; costs cannot be negative and price must be above zero.
After estimating sales volume, use the cash runway calculator to examine available cash under a monthly flow assumption, or the ROI calculator to compare a one-off investment with its total return.
Frequently asked questions
Why does the unit target round up?
Rounding down would leave fixed costs partly uncovered. The rounded target is the first whole unit count that reaches or exceeds the exact break-even volume.
Does revenue at break-even equal profit?
No. Revenue is total sales. At the exact break-even point it matches total fixed and variable costs; rounding to whole units may create a small surplus.
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