RunTheTests

Break-Even Calculator

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

System verdict

RESULT

Break even at 334 units

Each unit contributes 15 toward the fixed cost of 5000. You cover it after selling 334 units; every sale after that is profit.

Diagnostic telemetry
Units to break even
334
Contribution per unitPrice minus variable cost
15
Break-even revenue
8350.00

What this cannot tell you

  • Pure arithmetic on the figures you enter. It assumes a single product at a constant price and cost.

How this calculation works

Each unit earns its price minus its variable cost — that is its contribution. Dividing your fixed costs by the contribution gives the number of units that cover everything.

What the results mean

Contribution per unit
Price minus variable cost — what each sale puts toward the fixed costs.
Break-even units
How many you must sell before you are in profit. Rounded up, because a partial unit does not cover the gap.

Frequently asked questions

What if my price is below variable cost?

Then you lose money on every unit and never break even — the tool flags this rather than returning a negative or infinite figure. The fix is to raise the price above the variable cost so each sale contributes something toward fixed costs.

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