The method
How it is worked out
Units = Fp − c
- F
- Fixed costs
- p
- Selling price per unit
- c
- Variable cost per unit
Break-Even Calculator
Calculate break-even units and break-even revenue from fixed costs, selling price and variable cost per unit. The result updates as you type so you can compare scenarios quickly.
Keep in mind
What it leaves out
- Costs aren't flatFixed costs step up as you grow, and bulk buying lowers unit costs.
- One productThis assumes a single product at one price.
- TimeIt doesn't say how long reaching break-even will take.
Use the calculator to compare scenarios rather than as a guaranteed forecast.
About the Break-Even Calculator
Find the number of sales needed to cover a venture's fixed costs. This is helpful before setting a product price, opening a location or deciding whether the expected demand can support a new service.
How it works and an example to tryShow less
How to use the result
Contribution per unit equals selling price minus the variable cost of providing one unit. Divide fixed costs by that contribution to find break-even units, then use the selling price to estimate break-even revenue. If price does not exceed variable cost, selling more cannot cover fixed costs under these assumptions. The model assumes one average price and cost per unit.
Example to try
Model a food truck selling meals for 8 each and enter its food cost per meal and monthly fixed overheads. Increase the ingredient cost without changing the price to see how many extra meals must sell. Compare the break-even volume with realistic customer traffic.
Put it to work
Try it on a real situation
Load an example
What moves the result most
Worked out from your figures above. Tap a row to try it.
Who uses it, and when
Anyone launching a product, opening a shop or food outlet, pricing a course or event, and lenders or investors judging whether a plan's sales volume is believable.
Mistakes worth avoiding
- Setting a price below variable cost, which means more sales lose more money.
- Underestimating fixed costs by leaving out rent increases, insurance or your own salary.
- Comparing break-even units with hoped-for demand rather than realistic footfall.
Questions
What does the Break-Even Calculator do?
Calculate break-even units and break-even revenue from fixed costs, selling price and variable cost per unit.
How should I use the result?
Contribution per unit equals selling price minus the variable cost of providing one unit. Divide fixed costs by that contribution to find break-even units, then use the selling price to estimate break-even revenue. If price does not exceed variable cost, selling more cannot cover fixed costs under these assumptions. The model assumes one average price and cost per unit.
Does TechBullion store the information I enter?
The core calculation or transformation runs in your browser. Normal website security and analytics may still record page-level events, but the tool does not need to create a public record from your inputs.
What mistakes do people make with a break-even calculator?
Setting a price below variable cost, which means more sales lose more money. Underestimating fixed costs by leaving out rent increases, insurance or your own salary. Comparing break-even units with hoped-for demand rather than realistic footfall.
Is the result guaranteed?
No. Use the result as a practical check or planning aid and verify important decisions with the relevant primary source, provider or professional advice.
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Calculator results are estimates based on the figures entered and are not financial, investment, legal or tax advice.