Break-Even Calculator: Unit Sales & Revenue Thresholds

Find the minimum sales volume and revenue required to balance fixed overhead and per-unit variable costs.

Enter Calculation Values

Rent, insurance, salaries, software, and recurring overhead.
$
The customer retail price per unit.
$
Direct raw materials, per-unit packaging, shipping, or sales commissions.
$

Calculation Results

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Break-Even Sales Units (Whole Units)
50 units
  • Break-Even Sales Revenue: $2,500.00
  • Unit Contribution Margin: $20.00
  • Contribution Margin Ratio: 40.00%

The Break-Even Formula

Contribution Per Unit = Selling Price - Variable Cost Per Unit
Break-Even Units = Fixed Costs / Contribution Per Unit
Break-Even Revenue = Break-Even Units × Selling Price
Worked Example: If monthly fixed costs are $1,000.00, unit price is $50.00, and variable cost is $30.00:
1. Contribution per unit = $50 - $30 = $20.00
2. Break-Even Units = $1,000 / $20 = 50 units
3. Break-Even Revenue = 50 × $50 = $2,500.00

For physical goods that cannot be fractionally sold, the calculator takes the ceiling of the exact unit calculation to ensure all costs are safely covered.

Frequently Asked Questions

What happens if selling price is less than variable cost?

Every unit sold incurs an immediate loss. The business can never break even until unit selling price exceeds unit variable costs.

Does break-even analysis account for taxes?

Standard break-even models calculate operational gross equilibrium before corporate income taxes, as income tax is zero when net profit is zero.

Related Calculators & Resources

  • Profit Margin Calculator — Determine exact net profit and profit margin percentage from revenue and total costs. Accurately detect losses and analyze cost breakdown ratios.
  • Product Pricing Calculator — Solve for the exact retail selling price needed to hit your target profit margin after deducting manufacturing, packaging, shipping, and payment processing fees.
  • Markup Calculator — Calculate percentage markup on cost, examine the corresponding profit margin, or input target markup to solve for required retail selling price.

Helpful Reading

Learn more about strategic pricing in our guide: Business Pricing Masterclass.