Break-Even Units

Units = Fixed Costs / (Price − Variable Cost per unit).

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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

What are fixed costs?+
Don't change with volume: rent, salaries, software subscriptions, equipment depreciation.
Variable costs?+
Scale with units: raw materials, sales commissions, packaging, shipping, payment processor fees.
Margin of safety?+
Actual sales − break-even. % expressed: (actual − BE) / actual. Higher = lower business risk.
Multi-product break-even?+
Use weighted-avg CM. Or compute per-product BE then sum proportionally.
Break-even time vs. units?+
Time = months to reach break-even units at current sales rate. 50 units/mo to BE 1000 units = 20 months.

Related calculators

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Markup % = (price − cost) / cost. Margin % = (price − cost) / price. Common confusion.
Gross Margin
Gross margin % = (Revenue − COGS) / Revenue. Profit before operating expenses.
Contribution Margin
CM = Revenue − Variable Costs. CM ratio = CM / Revenue.
Customer Lifetime Value (LTV)
LTV = ARPU × gross margin × lifetime. Foundational SaaS unit economics.
CAC Payback Period
Months = CAC / (ARPU × gross margin). Time to recover acquisition cost.
MRR / ARR Growth Projection
MRR with monthly growth + churn → 12-month projection. ARR = MRR × 12.

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Units (and revenue) you need to sell to cover your fixed costs.