Business & Work · FREE TO USE

Break-Even Calculator

Know how many sales cover your fixed and variable costs.

01

Let’s work it out.

Start with the example, or make it your own.

02EXAMPLE RESULT

Break-even sales

250
units
Revenue at whole-unit break-even12,500currency units
Contribution per unit20currency units
Contribution margin40%
Exact break-even volume250units

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THE THINKING BEHIND THE ANSWER

How this calculation works

The contribution from each unit pays toward fixed costs. Whole-unit sales are rounded up. Prices, costs, and volume are assumed constant for the period.

Break-even units = fixed costs ÷ (price − variable cost)

Your calculation, step by step

  1. Contribution = 50 − 30 = 20 per unit.
  2. Required volume = 5,000 ÷ 20 = 250; round up to 250 units.
A worked example

5,000 fixed costs and a 20 contribution require 250 units.

A few good places to start

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