Simple single-product cost-volume-profit analysis
Use the result as a check within this type of task, with the assumptions shown above.
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Calculate break-even units and revenue when selling price exceeds variable cost.
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This is a single-product linear cost-volume-profit model. It assumes fixed costs stay fixed and variable cost/selling price per unit stay constant across the modeled volume.
Step costs, capacity limits, mixed product margins, taxes and financing can move the real break-even point.
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Estimate the unit volume at which total contribution covers entered fixed costs. The calculator exposes contribution per unit, contribution margin ratio, exact mathematical break-even units and the whole-unit threshold needed to reach or exceed break-even.
Enter fixed costs, variable cost per unit and selling price per unit.
Confirm that selling price is greater than variable cost so each additional unit provides positive contribution.
Compare the exact break-even result with the rounded-up whole-unit threshold and break-even revenue.
Contribution/unit = selling price − variable cost; break-even units = fixed costs ÷ contribution/unit.
Use the result as a check within this type of task, with the assumptions shown above.
Use the result as a check within this type of task, with the assumptions shown above.
Use the result as a check within this type of task, with the assumptions shown above.
If contribution per unit is zero or negative, additional sales do not generate money to cover fixed costs, so there is no finite break-even volume in this model.
The formula can return a fraction, but indivisible products usually require rounding up to the next whole unit to reach or exceed the mathematical threshold.
Step costs, capacity limits, discounts, product mix, changing variable costs, taxes and financing can all violate the simple linear assumptions used here.
Use the calculator library to switch tasks when the question, unit or assumption changes.
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