Find the units and revenue needed to cover fixed costs, and the units for a target profit.
Each unit sold contributes price − variable cost towards the fixed costs; that is the contribution margin per unit. Break-even units = fixed costs ÷ contribution margin per unit, rounded up to a whole unit because a part unit cannot be sold. Break-even revenue = fixed costs ÷ contribution margin %, where the margin % is the contribution divided by the price. The page opens on fixed costs of 10,000, a price of 25 and a variable cost of 15: the contribution is 10 (40%), so break-even is 1,000 units and 25,000 of revenue. The box under the answer shows each step with your numbers.
When the division is not exact the page rounds the units up and shows the unrounded figure beside it. With fixed costs of 5,000, a price of 12.50 and a variable cost of 7, the contribution is 5.50, break-even is 909.09 units, shown as 910, and the revenue is 5,000 ÷ 0.44 = 11,363.64. That revenue is worked from the exact units rather than from the rounded 910, which would give 11,375.00. Selling the rounded-up number of units covers the fixed costs with a small surplus.
The optional target profit adds a second answer: units = (fixed costs + target) ÷ contribution margin, rounded up, and revenue = (fixed costs + target) ÷ margin %. With the example above and a target of 2,000, that is 7,000 ÷ 5.50 = 1,272.73, shown as 1,273 units, and 15,909.09 of revenue. Leave the box empty or 0 to hide it. Fixed costs and the target can be 0; with fixed costs of 0 the break-even is 0 units.
If the price per unit is equal to or below the variable cost per unit, each sale adds nothing or loses money before fixed costs, and selling more never closes the gap. The page then shows a fixed message saying there is no break-even point and shows no figures. The calculation assumes one price and one variable cost per unit at every volume, with no step costs, discounts or tax. Amounts have no currency symbol and are rounded to 2 decimals only when shown. This is an estimate, not financial advice.
Divide the fixed costs by the contribution margin per unit (price − variable cost) and round up. With fixed costs of 10,000, price 25 and variable cost 15, that is 10,000 ÷ 10 = 1,000 units.
A part unit cannot be sold, and rounding down would leave the fixed costs not quite covered. With 909.09 units needed, the page shows 910 and notes the exact figure.
The part of each sale left after the variable cost: price − variable cost per unit, and that divided by the price as a percentage. For a price of 25 and a variable cost of 15 it is 10.00 and 40%.
Type the target in the optional box. Units = (fixed costs + target) ÷ contribution margin, rounded up. With fixed costs of 5,000, a margin of 5.50 and a target of 2,000, that is 7,000 ÷ 5.50, so 1,273 units.
The price is not above the variable cost per unit, so each sale contributes nothing or less. Raise the price or lower the variable cost.