Break-Even Units Calculator (Math)
Find how many units you must sell to cover fixed costs, using the contribution-margin break-even formula step by step.
How it works
Contribution per unit = price − variable cost · Break-even units = fixed costs ÷ contribution per unit
Every unit sold contributes its price minus its variable cost toward covering the fixed costs; that gap is the contribution margin. Break-even is simply how many of those contributions it takes to fully cover fixed costs, so you divide fixed costs by the per-unit contribution. If price does not exceed variable cost the contribution is zero or negative and no volume ever breaks even — the calculator flags that case.
Worked example
With $12,000 in fixed costs, a $40 price and $25 variable cost, each unit contributes $15. Break-even is 12,000 ÷ 15 = 800 units. Selling 800 units brings in $32,000, which exactly covers fixed plus variable costs.
Frequently asked questions
What is contribution margin?
It is the price of a unit minus its variable cost — the money each sale contributes toward fixed costs and, after break-even, toward profit. Here $40 − $25 = $15 per unit.
Why round break-even units up?
You cannot sell a fraction of a unit, and selling the whole number just below break-even still leaves a small loss. Rounding up gives the first unit count that fully covers fixed costs.
What if variable cost is above the price?
Then each sale loses money and no volume can break even. You would need to raise the price or cut variable cost so the contribution margin becomes positive.
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This calculator is for educational purposes. Double-check important results before acting on them.