Break-even calculator
Before adding spend or inventory, find the sales volume required to cover fixed costs. This calculator converts the contribution margin of each sale into a concrete break-even target.
Inputs and formula
- Fixed costs: rent, salaries, subscriptions, and other costs that stay constant for the period.
- Sale price per unit: the revenue collected for one unit or service.
- Variable cost per unit: materials, shipping, packaging, payment fees, or delivery costs tied to one sale.
- Break-even units = fixed costs ÷ (sale price − variable cost); break-even revenue = break-even units × sale price.
Worked example
With $10,000 in fixed costs, a $50 price, and $20 of variable cost, each sale contributes $30. The unrounded formula result is 333.33 units and $16,666.67 of break-even revenue. The calculator displays a 334-unit target because businesses sell whole units; selling a 334th unit would put revenue at $16,700.
Caveats and next decision
The calculator assumes one stable price and variable cost. It does not model taxes, discounts, refunds, multiple products, capacity limits, or step-up costs. If price is at or below variable cost there is no break-even point; use the result to test pricing and mix before committing to a volume target.
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