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Break Even Calculator

Calculate break-even units and revenue when selling price exceeds variable cost.

Live editable inputs

Change the values and see the calculation update immediately.

Formula and working

The relationship behind the answer stays visible on the page.

Assumptions visible

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Inputs

Results

333.33333 break-even units
Whole units to reach or exceed break-even: 334
Contribution per unit: 15
Contribution margin ratio: 60%
Break-even revenue at the exact unit result: 8,333.3333
Show the working
  1. 1. Contribution/unit = 25 − 10 = 15.
  2. 2. Break-even units = 5,000 ÷ 15 = 333.33333.
  3. 3. Break-even revenue = 333.33333 × 25 = 8,333.3333.

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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How to use this calculator

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.

Step-by-step

  1. Step 1

    Enter fixed costs, variable cost per unit and selling price per unit.

  2. Step 2

    Confirm that selling price is greater than variable cost so each additional unit provides positive contribution.

  3. Step 3

    Compare the exact break-even result with the rounded-up whole-unit threshold and break-even revenue.

How the result is calculated

Contribution/unit = selling price − variable cost; break-even units = fixed costs ÷ contribution/unit.

Where this calculator is useful

Simple single-product cost-volume-profit analysis

Use the result as a check within this type of task, with the assumptions shown above.

Checking how price or variable cost changes break-even volume

Use the result as a check within this type of task, with the assumptions shown above.

Planning the minimum whole-unit sales threshold under fixed assumptions

Use the result as a check within this type of task, with the assumptions shown above.

Common questions

Why must selling price exceed variable cost?

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.

Why show both exact and whole break-even units?

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.

What can make real break-even different?

Step costs, capacity limits, discounts, product mix, changing variable costs, taxes and financing can all violate the simple linear assumptions used here.

Need a different calculation?

Use the calculator library to switch tasks when the question, unit or assumption changes.

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Common break-even questions

break-even unitsbreak-even revenuecontribution per unitfixed and variable costs

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