MihsabaHow to use
The break-even calculator finds the sales volume where contribution from each unit has covered fixed costs. It also shows contribution margin and can include an optional target profit or expected volume so you can compare a plan with the break-even floor.
- Enter fixed costs for the same period in which you are measuring sales.
- Enter selling price and variable cost per unit in the same currency.
- Optionally add a target profit or expected unit volume, then calculate.
How it is calculated
Example
Example: fixed costs of 5,000, price 50 and variable cost 20 give 30 contribution per unit. Exact break-even is 166.67 units, so a business selling whole units needs 167 units, producing 8,350 of revenue at that whole-unit threshold.
Important notes
This is a planning model, not a sales forecast. It assumes price, variable cost and fixed cost stay constant over the range being studied. Discounts, product mix, step-cost capacity, taxes and returns can move the result. If price does not exceed variable cost, this model has no finite break-even volume.
Frequently asked questions
What is contribution margin?
It is selling price minus variable cost per unit, the amount available to cover fixed costs and then profit.
Why show exact and whole-unit break-even?
The mathematical result can be fractional, while many products are sold only as whole units, so the calculator also shows the minimum whole-unit threshold.
Does it work for multiple products?
The simple formula assumes one product or a fixed sales mix. A changing mix needs a weighted contribution approach.
Is this calculator free?
Yes. It is free to use and requires no account.