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Break-even

Find how many units you need to sell to cover your costs.

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Scenario A

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How this calculator works

Break-even: the basics

Find the minimum whole number of units you must sell in a month to cover fixed and per-unit variable costs.

How to use the inputs

  • Monthly fixed costs: Enter costs for the month that do not vary with the number of units sold.
  • Selling price per unit: Enter the selling price of one unit.
  • Variable cost per unit: Enter the variable cost of producing or selling one unit, not the total monthly variable cost.

Change an input to update the results. Add up to four scenarios to compare separate assumptions; reset affects only the selected scenario.

Understanding the results

  • Units to break even is rounded upward to a whole unit. Break-even revenue is that rounded unit count multiplied by selling price.
  • Contribution per unit is price minus variable cost. This contribution first covers fixed costs; it is not the same as profit per unit after all costs.

The formula, in words

Contribution C = S − V. Units U = round up(F ÷ C). Break-even revenue = U × S.

F is monthly fixed costs, S is selling price per unit, V is variable cost per unit, and C is contribution per unit. U is a whole-unit count; round up means choose the next whole number if needed.

A break-even result requires S > V. At or below variable cost, the calculator returns a validation message instead of a unit count.

Assumptions and limits

  • One product or one consistent unit mix is modeled. Price, variable cost per unit and monthly fixed costs stay constant.
  • All modeled units are sold. There is no growth rate, interest or compounding. Round-up can mean revenue slightly exceeds the exact cost-covering threshold.
  • Only entered costs are included. Taxes, fees, discounts and capacity limits are not added automatically; use a consistent basis for price and costs.

Currency results display whole units; other numbers show at most one decimal place. Calculations keep full precision unless whole units must be rounded up for break-even. Rounded figures may not add up exactly.

Examples below use USD and local number formatting. Country selection changes currency labels, formatting and terminology; it does not convert money or automatically apply local tax or lender rules.

Worked example

This fixed example uses the calculator’s default inputs; it does not change when you edit a scenario. Any example interest or return rate is an assumption, not a guaranteed outcome.

Monthly fixed costs
USD 10,000
Selling price per unit
USD 50
Variable cost per unit
USD 30

Contribution is USD 50 − USD 30 = USD 20 per unit. Divide USD 10,000 by USD 20: the whole-unit threshold is 500 units. Selling those units at USD 50 produces USD 25,000 of revenue.

Units to break even
500 units
Break-even revenue
USD 25,000
Contribution per unit
USD 20

Common questions

Why is the unit count rounded up?

A fraction of a unit may not be sellable. Rounding down could leave revenue below the amount needed to cover costs.

What if the selling price equals variable cost?

There is no positive contribution toward fixed costs. The calculator requires selling price to exceed variable cost, even when fixed costs are zero.

Does break-even revenue mean profit?

No. Revenue is money from sales before costs. At the threshold, that revenue covers the entered costs, with a possible small surplus from rounding units up.

MAKE YOUR NEXT MOVE WITH CLARITY

More ways to work the numbers

For planning and education. Results are estimates based on your inputs, not financial advice. Returns are not guaranteed. Taxes, fees and inflation are excluded unless shown. Country selection changes currency, number formatting and terminology; it does not apply local tax rules or convert amounts.