Break-Even Units Calculator
This calculator finds the number of units you need to sell to break even, the revenue required to cover all costs, and the contribution margin for each unit. Enter your fixed costs per period, selling price per unit, and variable cost per unit. The calculator immediately shows break-even units, break-even revenue, contribution margin in dollars, and the contribution margin ratio as a percentage. Use this for product launch decisions, pricing strategy, and profit planning.
Break-even formulas
Contribution margin = Selling price - Variable cost per unit
CM ratio = Contribution margin / Selling price x 100%
Break-even units = Fixed costs / Contribution margin
Break-even revenue = Fixed costs / CM ratio
Break-even example
Fixed costs: $50,000. Selling price: $25. Variable cost: $10. Contribution margin: $15. Break-even units: 50,000 / 15 = 3,334 units. Break-even revenue: 3,334 x $25 = $83,350.
Break-even calculator: frequently asked questions
What is break-even analysis?
Break-even analysis finds the sales volume at which total revenue equals total costs. Below this point you operate at a loss; above it you make a profit. It is essential for pricing and launch decisions.
What is the contribution margin?
Contribution margin is the selling price per unit minus the variable cost per unit. It represents how much each unit sold contributes toward covering fixed costs. Once fixed costs are covered, contribution margin becomes profit.
What counts as a fixed cost?
Fixed costs do not change with production volume: rent, salaries, insurance, equipment leases, and loan payments. They exist even if you sell zero units.
What counts as a variable cost?
Variable costs change directly with output: raw materials, packaging, shipping, sales commissions, and payment processing fees. They only occur when you produce or sell a unit.
How do I lower my break-even point?
Increase your selling price, reduce variable costs per unit, or reduce fixed costs. Increasing the selling price has the largest leverage effect because it raises both the contribution margin and revenue simultaneously.
Official sources
- U.S. Small Business Administration: Business financial management.
Reviewed by the CalculatorHub team, edited by James Graham, 14 June 2026. See our methodology.