How Does This Calculator Work?
The calculator divides total fixed costs by your contribution margin per unit (selling price minus variable cost per unit) to find how many units you must sell before covering all fixed costs.
Before launching a product, knowing your break-even point — the sales volume where you stop losing money — is essential. This calculator gives you that number from your fixed costs and per-unit pricing.
Example Calculation
New Product Example
$10,000 fixed costs, $50 price per unit, $20 variable cost per unit.
10000/(50-20) ≈ 333.3 units to break even.
Tips
If your variable cost per unit is close to or above your selling price, the formula will return an extremely high or negative number — a sign the pricing itself isn't viable at that cost structure.