Break-even Calculator
Calculate break-even unit volume from fixed costs, selling price per unit, and variable cost per unit.
How to use
- Enter fixed costs, unit price, and unit variable cost.
Capabilities and scope
Fixed costs are divided by unit contribution margin price−variableCost.
How it works
units=fixedCost/(price−variableCost), requiring positive contribution margin.
Example
Fixed cost 1000, price 20, variable cost 10 gives 100 units.
Useful for
- Estimate minimum sales volume for a product scenario
Before you use it
- Taxes, stepped costs, changing fixed costs, and whole-order constraints need separate treatment.
Frequently asked questions
What if price equals variable cost?
Contribution margin is zero, so no finite break-even quantity exists.