Break-Even Units
Units = Fixed Costs / (Price − Variable Cost per unit).
Result
Break-even units
2500
Revenue at break-even: $125,000.
- Fixed costs$50,000
- Price / unit$50
- Variable cost / unit$30
- Contribution margin$20.00/unit
- CM ratio40.0%
- Break-even units2500
- Break-even revenue$125,000
Step-by-step
- Contribution margin = price − variable cost = 50 − 30 = $20.00.
- Units = fixed / CM = 50000 / 20.00 = 2500.
How to use this calculator
- Enter fixed + price + variable cost.
About this calculator
Break-even = number of units to sell to cover all fixed costs (rent, salaries, equipment). Each unit's contribution margin (price − variable cost) chips away at fixed costs. Higher CM = fewer units to break-even. Useful for new product launches: if break-even is 10,000 units/year and your TAM caps at 20,000, you need >50% market share — risky bet. Standard cost-volume-profit (CVP) analysis.
Frequently asked
Don't change with volume: rent, salaries, software subscriptions, equipment depreciation.
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