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Break-Even Calculator

Estimate units and revenue needed to cover entered fixed and variable costs.

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TOOL BREAK-EVEN-C

What this tool does

About the break-even calculator

The calculation shows contribution per unit and rounds required units upward. It assumes constant price and unit cost across the scenario.

Method
Contribution
unit price - variable cost per unit
Units
fixed costs / contribution per unit
Revenue
break-even units × unit price
Assumptions
  • Selling price and variable unit cost remain constant.
  • All relevant fixed costs use the same time period.
  • Demand and capacity are not modelled.

How to use it

  1. Enter monthly (or annual) fixed costs, the unit price and the variable cost per unit.
  2. Read the contribution per unit — price minus variable cost.
  3. Read break-even units (rounded up, because you cannot sell 0.4 of a unit) and break-even revenue.
  4. Stress-test: nudge the price and costs to see how fragile the number is.

Useful for

  • Find how many units a new product must sell before it stops losing money.
  • Test whether a price cut still clears your fixed costs at realistic volume.
  • Put a hard number on “is this side project viable?” before committing.

Straight answers

Break-Even Calculator FAQ

What counts as fixed versus variable cost?

Fixed costs arrive whether you sell or not — rent, subscriptions, salaries. Variable costs scale per unit — materials, shipping, transaction fees. Grey areas exist; put each cost where it behaves.

My contribution per unit is negative — what now?

Every sale loses money before fixed costs even start, so no volume rescues it. Raise the price or cut the unit cost; the calculator surfaces this immediately instead of letting a big units number hide it.