How it works
How to calculate it
The calculator applies the values you enter to this formula:
Break-even units = fixed costs ÷ (selling price − variable cost).
How to use this calculator
- Add fixed costs for one period.
- Enter selling price per unit.
- Subtract complete variable cost per unit to find contribution.
Worked example
With $12,000 fixed costs and $45 contribution per sale, break-even is 267 units after rounding up.
Important assumptions
- Selling price must exceed variable cost.
- Demand and capacity are not modeled.
- Taxes, financing, and changing costs are excluded.
Common mistakes to avoid
- Mixing monthly fixed costs with annual sales.
- Leaving variable fees out of unit cost.
- Treating break-even as a profit target.
Method reviewed June 10, 2026. Prices and rates are user-provided defaults and should be replaced with local values.