Business

Break-even calculator

Find how many units you must sell to cover fixed costs.

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  1. 1 Enter monthly fixed costs.
  2. 2 Enter the selling price of one unit.
  3. 3 Enter the variable cost of one unit.
  4. 4 Read the units you need to sell. Fractions are rounded up.

How it works

Break-even is the sales volume where revenue covers fixed costs and the variable cost of each unit. Enter monthly fixed costs, the price of one unit, and the variable cost of one unit. The result is the number of units, rounded up, and the revenue at that point. If the price is not above the variable cost, there is no break-even.

Units = fixed costs / (price − variable cost per unit).

Frequently asked questions

What is a fixed cost?

A cost you pay even if you sell nothing that month, such as rent. Materials that scale with each unit are variable.

Why round up?

You cannot sell a fraction of the usual product, and you have not broken even until the full unit is sold.