Break-Even Calculator
Calculate the unit sales needed to cover fixed and variable business costs. This calculator determines the break-even volume and revenue threshold for single product operations.
Formula & Math Logic
Break-Even (Units) = Fixed Costs / (Price per Unit - Variable Cost per Unit).
Worked Calculation Example
$20k Fixed Costs, $50 Selling Price
At $30 variable cost, contribution margin is $20. You must sell 1,000 units ($50,000 revenue) to break even.
Frequently Asked Questions (FAQ)
What is unit contribution margin?
It is the selling price minus the variable cost, representing the amount each unit contributes to covering fixed costs.
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