Multi-Product Break-Even Calculator (Sales Mix)
Find the break-even point for a business selling several products: weighted average contribution margin from the sales mix, break-even units per product and break-even sales revenue.
How it works
Weighted average contribution margin = Σ (sales mix share × (price − variable cost)) · Break-even units = fixed costs ÷ weighted contribution margin · Units of each product = break-even units × its mix share · Break-even revenue = Σ units × price
When a business sells several products, each contributes a different margin, so the break-even point depends on the sales mix — the share of units each product represents. Weighting each product’s contribution margin by its share gives one average margin for a “bundle” of the mix; dividing fixed costs by it gives the total units needed, which are then split by the same mix. If the mix shifts toward low-margin products, the break-even point rises even when prices and costs stay the same.
Worked example
Fixed costs are $30,000. Product A ($40 price, $22 cost) is 50% of units, B ($25, $10) is 30% and C ($60, $42) is 20%. Weighted margin = 0.5 × 18 + 0.3 × 15 + 0.2 × 18 = $17.10 per unit, so break-even is 30,000 ÷ 17.10 = 1,754.4 units: 877.2 of A, 526.3 of B and 350.9 of C. At a weighted average price of $39.50 the break-even sales revenue is $69,298.25.
Sources: AccountingTools — What is sales mix? · Investopedia — Break-even analysis
Frequently asked questions
How do you calculate break-even with multiple products?
Multiply each product’s contribution margin by its share of units sold and add them up to get the weighted average contribution margin. Divide fixed costs by that figure for total break-even units, then split them by the sales mix.
What is the sales mix?
The proportion of each product in total units sold — for example 50% A, 30% B, 20% C. Some textbooks use revenue shares instead; with revenue shares, divide fixed costs by the weighted contribution margin ratio to get break-even sales.
Why does the sales mix change the break-even point?
Products earn different margins. Selling more of a low-margin product means each average unit covers less of the fixed costs, so more units are needed to break even.
What if my mix percentages do not add up to 100%?
The calculator scales them proportionally, so 5, 3 and 2 work the same as 50%, 30% and 20%. You can also enter expected unit volumes directly as the mix.
Related calculators
Planning estimate only — real prices, fees and results depend on your own costs, platform terms, local taxes and what your market will pay. Check the numbers against your books before you commit to a price or budget.