Formula and assumptions
This calculator uses the values entered above only. Results are a planning aid, not accounting, tax, pricing, or investment advice.
Break-even Calculator
Calculate the units needed to cover fixed costs at a given contribution per sale.
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About Break-even Calculator
Break-even Calculator calculates sales unit volume and revenue required to cover total fixed overhead costs.
How to use Break-even Calculator
- Enter total monthly or annual fixed costs (e.g. rent, salaries, software).
- Enter selling price per unit.
- Enter variable cost per unit.
- Click Calculate to find break-even unit count and break-even revenue.
Examples
Fixed Costs: £5,000.00, Price/Unit: £50.00, Variable Cost/Unit: £30.00 Contribution/Unit: £20.00 Result: Break-even Sales: 250 units (£12,500.00 revenue).
FAQ
What is unit contribution margin?
Unit contribution margin is selling price minus variable cost per unit. It represents revenue available to cover fixed costs.
What happens after reaching the break-even point?
Every unit sold beyond break-even contributes its full contribution margin directly to net profit.
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