Break-Even Calculator
The Break-Even Calculator determines how many units you must sell to cover your fixed costs, based on your price per unit and variable cost per unit.
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How This Tool Works
Enter your total fixed costs, the price you charge per unit, and your variable cost per unit to calculate your break-even point.
Formula & Method
Contribution margin per unit = price per unit − variable cost per unit. Break-even units = fixed costs ÷ contribution margin per unit.
Example Calculation
With $10,000 in fixed costs, a $50 price per unit, and $30 variable cost per unit, you need to sell 500 units to break even.
Frequently Asked Questions
What are fixed vs. variable costs?+
Fixed costs (rent, salaries, insurance) stay the same regardless of sales volume. Variable costs (materials, shipping, per-unit labor) scale directly with how much you sell.
What is contribution margin?+
Contribution margin is the amount each unit sold contributes toward covering fixed costs, calculated as price minus variable cost per unit.
What happens after I break even?+
Every unit sold beyond your break-even point contributes its full contribution margin directly to profit, since fixed costs are already covered.
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