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Break-Even Calculator: Units and Revenue

Find how many units you must sell to cover fixed and variable costs, and the revenue at the break-even point.

By PriceAndProfit Editorial Updated

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Fill in the fields: the result appears under the form, with the formula below it.

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How it works

Break-even units = Fixed costs ÷ (Price − Variable cost per unit)

Every unit you sell brings in its price and costs its variable cost — materials, packaging, per-order fees. What is left, the contribution margin, goes toward fixed costs that do not change with volume, such as rent or software. With fixed costs of $10,000, a price of $50 and a variable cost of $30, each unit contributes $20, so you need $10,000 ÷ $20 = 500 units, or $25,000 of revenue, to break even.

Fixed costs $10,000, price $50, variable cost $30
Units soldRevenueTotal costsProfit / loss
300 $15,000 $19,000 −$4,000
400 $20,000 $22,000 −$2,000
500 $25,000 $25,000 $0
600 $30,000 $28,000 +$2,000
700 $35,000 $31,000 +$4,000

Use the same period for fixed costs and sales: monthly fixed costs give units per month. With positive fixed costs, a price equal to variable cost leaves the fixed loss unchanged; a lower price deepens the loss as sales rise. This calculator requires positive contribution. If fixed costs are zero, zero sales already break even, and at zero contribution every volume does; those cases do not have a unique positive-sales threshold.

Full break-even analysis example

A complete analysis answers four questions with the same three inputs: the break-even point in units, the break-even point in dollars, how far planned sales sit above it, and what happens if one input changes. Using the example above with a plan of 700 units a month:

Fixed costs $10,000, price $50, variable cost $30, plan 700 units
QuestionCalculationAnswer
Break-even in units $10,000 ÷ $20 500 units
Break-even in dollars 500 × $50, or $10,000 ÷ 40% $25,000
Margin of safety 700 − 500 units; $35,000 − $25,000 200 units · $10,000 · 28.6% of plan
Profit at plan 200 units above break-even × $20 $4,000
Units for a $2,000 profit ($10,000 + $2,000) ÷ $20 600 units
Break-even if the price drops to $45 $10,000 ÷ $15 667 units · $30,000

The last row is the warning sign. A $5 price cut leaves the same 700-unit plan only about 33 units above break-even — less than 5% of planned sales — instead of 200. Drawing the same numbers as a break-even chart makes the shrinking profit area visible, and sorting the costs carefully into fixed and variable before you start keeps every figure in the table honest. Repeat the analysis whenever a supplier price, a fee or the rent changes, not only when the price does.

Frequently asked questions

What is the break-even point in units and in dollars?

Units: fixed costs divided by contribution per unit. Dollars: units times price, or fixed costs divided by the contribution margin ratio. $10,000 ÷ $20 = 500 units; $10,000 ÷ 0.40 = $25,000.

Why is the result rounded up?

You cannot sell part of a unit, and the unit just below the exact figure still leaves a small loss. 642.9 units becomes 643.

How do I include a profit target?

Add the profit you want to the fixed costs. With $10,000 of fixed costs and a $2,000 target, ($10,000 + $2,000) ÷ $20 = 600 units.

What counts as a variable cost?

Anything that grows with each unit sold: materials, packaging, shipping you pay, payment processing and marketplace fees per order.

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