Calculator
Break-Even Calculator
Estimate the exact unit volume and revenue needed for an offer to cover fixed costs after per-unit costs are paid.
Result
Break-even units
334
Break-even revenue
$16,700.00
Contribution margin
$30.00
How to use this calculator
What this calculator does
Estimate the exact unit volume and revenue needed for an offer to cover fixed costs after per-unit costs are paid.
How to use it
Enter the fixed costs for the period or launch, the selling price, and the variable cost attached to each sale. Then compare the required unit count with real capacity, sales pipeline, and demand before treating the offer as viable.
What the result means
Use the result as a direct calculation from the values you entered. If it looks off, check the inputs and formula shown on this page.
Browse more business calculators for related estimates and comparisons.
Business results are estimates for planning and education. They are not business, legal, tax, employment, accounting, or financial advice.
Scenario guidance
When to use this
Use this before launching, discounting, or scaling an offer where both fixed setup costs and per-sale costs matter.
Example scenario
A small business is pricing a live training event and wants to know whether the venue, contractor labor, software, and setup costs can be covered at the planned ticket price.
Inputs that usually matter most
- Fixed costs, because they must be covered before the offer breaks even.
- Price per unit, which controls revenue per sale.
- Variable cost per unit, because it reduces contribution margin on every sale.
Common mistake to avoid
Do not leave out costs that rise with each sale, such as card fees, packaging, commissions, fulfillment, direct support time, or event materials.
How to interpret the result
The break-even unit count is the first whole unit count that covers costs. If that count is above realistic demand or capacity, the pressure is usually in price, variable cost, fixed cost, or launch scope.
This is a simplified operating estimate. It does not model taxes, financing costs, refunds, inventory timing, cash collection delays, or risk.
Formula
Contribution margin is price per unit minus variable cost per unit. Break-even units divide fixed costs by contribution margin, and break-even revenue multiplies those units by price per unit.
Example break-even check
A workshop with $18,000 in fixed costs, a $75 seat price, and $32 in per-attendee costs has a $43 contribution margin. It needs 419 seats sold, producing $31,425 in revenue, to break even.
Frequently Asked Questions
What if price is less than variable cost?
The calculator shows that break-even is not available because each sale loses money before fixed costs are covered.
Should fixed costs include my salary?
Include owner pay or salary if you want the break-even point to cover that cost.
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