Break-Even Calculator

Break-even volume5,000.00 fixed costs divided by 30.00 contribution/unit = 166.67 exact units; practical target 167 units and 8,350.00 revenue.

Fixed costscurrencySelling price per unitcurrencyVariable cost per unitcurrencyTarget profitoptional currency

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Break-Even Calculator: 167 units to break even. 5,000.00 fixed costs divided by 30.00 contribution/unit = 166.67 exact units; practical target 167 units and 8,350.00 revenue.

Formula applied

The exact method behind this answer

CalculationTime keeps the method visible so the number can be checked instead of blindly trusted.

Contribution margin per unit = selling price − variable cost per unit. Break-even units = fixed costs ÷ contribution margin. Units for target profit = (fixed costs + target profit) ÷ contribution margin. Break-even revenue = rounded-up units × selling price.

Apply the formulaContribution margin per unit = selling price − variable cost per unit. Break-even units = fixed costs ÷ contribution margin. Units for target profit = (fixed costs + target profit) ÷ contribution margin. Break-even revenue = rounded-up units × selling price.167 units to break even5,000.00 fixed costs divided by 30.00 contribution/unit = 166.67 exact units; practical target 167 units and 8,350.00 revenue.

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Current inputs in the calculation

These values come from the controls above and update when the calculator changes.

Fixed costs: 5,000 currency
Selling price per unit: 50 currency
Variable cost per unit: 20 currency
Target profit: 0 optional currency

Resulting answer

167 units to break even

5,000.00 fixed costs divided by 30.00 contribution/unit = 166.67 exact units; practical target 167 units and 8,350.00 revenue.

Answer: 167 units to break even
Live support: 5,000.00 fixed costs divided by 30.00 contribution/unit = 166.67 exact units; practical target 167 units and 8,350.00 revenue.

Assumptions used

What this answer assumes

Whole-unit planning target. If contribution margin is zero or negative, break-even is impossible at the entered price and cost.

Selling price and variable cost per unit are treated as averages that stay constant across the range being checked.
Fixed costs are the costs that must be recovered before profit is counted.
The practical sales count is rounded up to a whole unit because most products or jobs cannot be sold in fractions.
Tax, VAT/GST, discounts, refunds, payment fees, stockouts and capacity limits are not included unless you include them in price or variable cost.

Master’s Tip

How to use the result well

Master’s Tip: use contribution margin after real per-sale costs, not just material cost. Marketplace fees, card fees, packaging, freight subsidies, refunds and labour can turn an apparently safe break-even point into a loss.

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Save the inputs, result, formula, assumptions, page URL and date together so the calculation can be reviewed later.

Fixed costs: 5,000 currency
Selling price per unit: 50 currency
Variable cost per unit: 20 currency
Target profit: 0 optional currency

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Formula

Contribution margin per unit = selling price − variable cost per unit. Break-even units = fixed costs ÷ contribution margin. Units for target profit = (fixed costs + target profit) ÷ contribution margin. Break-even revenue = rounded-up units × selling price.

Worked example

Fixed costs of 5,000 divided by a 30 contribution margin gives 166.67 units. Because you cannot normally sell 0.67 of a unit, the practical target is 167 units. At 50 per unit, that is 8,350 revenue before tax or other adjustments.

Professional note

Regional and unit assumptions

Standard or basis: transparent contribution-margin arithmetic. The calculator is currency-neutral and does not claim tax, accounting or financial-advice authority.

Assumptions and limitations

Selling price and variable cost per unit are treated as averages that stay constant across the range being checked.
Fixed costs are the costs that must be recovered before profit is counted.
The practical sales count is rounded up to a whole unit because most products or jobs cannot be sold in fractions.
Tax, VAT/GST, discounts, refunds, payment fees, stockouts and capacity limits are not included unless you include them in price or variable cost.

Methodology & Accuracy

How this calculator is checked

CalculationTime pages are built around visible arithmetic: the formula, assumptions, worked example and practical limitations are shown so the result can be checked rather than simply trusted.

Formula used

Standard or basis

Standard or basis: transparent contribution-margin arithmetic. The calculator is currency-neutral and does not claim tax, accounting or financial-advice authority.

Where a calculator follows a named legal, trade or industry standard, that standard is cited visibly. Otherwise the page uses transparent general arithmetic and states its limits.

Master's Tip

Questions

What is break-even point?

Break-even point is the sales volume where total contribution margin equals fixed costs, so profit is zero before any target profit is added.

How do I calculate break-even units?

Subtract variable cost per unit from selling price to get contribution margin, then divide fixed costs by that contribution margin.

Why does the calculator round units up?

The exact formula may return a fraction, but a practical sales plan normally needs whole units, jobs or orders. Rounding down would leave costs uncovered.

What if variable cost is higher than selling price?

Then contribution margin is zero or negative, so break-even is not reachable through volume at that price. Price, cost or business model must change first.

Does break-even include tax?

No. Use tax-exclusive or net-of-tax values consistently, then apply local tax rules separately.

Calculation note

Break-even analysis is a simple management-accounting tool: it separates fixed costs from per-unit contribution so a price or launch plan can be checked before money is committed.

Contribution margin is the useful unit number

Revenue alone does not cover fixed costs. Each sale first has to pay its own variable cost, and only the remaining contribution can help recover fixed costs. That is why the calculator makes contribution margin visible in the result support text.

Break-even is not the same as success

Breaking even means the entered fixed costs are covered under the stated assumptions. It does not include cash timing, inventory risk, taxes, owner wages, customer acquisition volatility or whether enough demand exists at the chosen price.

Target profit changes the question

Adding target profit turns the calculation from “How many sales cover costs?” into “How many sales cover costs and leave this profit?” The same contribution margin formula handles both, but the business decision is different.

Sources and further readingU.S. Small Business Administration: Calculate your startup costs Harvard Business School Online: Financial accounting terms