Break-even calculator

Contribution per unit: $25
Contribution margin ratio: 41.67%
Fixed costs (plus target) ÷ contribution: 81.2
Break-even units (rounded up): 82
Break-even revenue: $4,872
Revenue at that many whole units: $4,920

The break-even point is the number of units whose contribution covers the fixed costs: fixed costs ÷ (price − variable cost per unit), rounded up. With $2,030 of fixed costs, a $60 price and $35 of variable cost, each unit contributes $25, and 81.2 rounds up to 82 units.

Formula

Contribution per unit = Price − Variable cost per unit
Break-even units = Fixed costs ÷ Contribution per unit (rounded up)
Contribution margin ratio = Contribution per unit ÷ Price
Break-even revenue = Fixed costs ÷ Contribution margin ratio
Units for a target profit = (Fixed costs + Target profit) ÷ Contribution per unit

Worked example

A product sells for $60 and has $35 of variable cost per unit. Fixed costs are $2,030 a month. How many whole units must it sell each month to break even?

Contribution: $60 − $35 = $25 a unit.
$2,030 ÷ $25 = 81.2.
Round up: 81 units would leave $5 uncovered.

Answer: 82

From the lesson Break-Even.

Do it in your head: Break-even in sales dollars

You know the fixed costs and the contribution margin ratio.

Write the ratio as a decimal: 40% is 0.4.
Divide the fixed costs by it.
Check: the ratio times your answer gives back the fixed costs.

Profit around break-even

Fixed costs $2,030, price $60, variable cost $35: each unit contributes $25.

Profit around break-even
Units sold	Contribution	Profit or loss
80	$2,000	−$30
81	$2,025	−$5
82	$2,050	$20
83	$2,075	$45
84	$2,100	$70

Try three

A product sells for $230 and has $170 of variable cost per unit. Fixed costs are $9,960 a month. How many whole units must it sell each month to break even?

Your answer
Show the answer
166
1. Contribution = $230 − $170 = $60 per unit.
2. Break-even = $9,960 ÷ $60 = 166 units.
Fixed costs are $29,400 a month and the contribution margin ratio is 20%. What monthly sales revenue breaks even?

Your answer
Show the answer
$147,000.00
1. Each sales dollar contributes $0.20, so revenue needed = $29,400 ÷ 0.2 = $147,000.
2. Check: 20% of $147,000 is $29,400.
A workshop sells 104 units a month and breaks even at 13 units. By what percentage could monthly unit sales fall before it reaches break-even?

Your answer
Show the answer
87.5%
1. Headroom ÷ current = (104 − 13) ÷ 104 = 91 ÷ 104 = 87.5%.
2. Divide by current sales, not by the break-even point.

That’s the idea. Keep going: 4 warm-up problems, no sign-up →

Learn it properly: Break-Even → · the course: Break-Even

Related lessons: Contribution Margin · Fixed, Variable & Step Costs

Questions

Why round break-even units up?

Because one unit fewer still leaves a loss. At 81 units the contribution is $2,025, short of the $2,030 of fixed costs; at 82 it is $2,050.

Why not divide the fixed costs by the price?

Part of each sale’s price pays that sale’s variable costs. Only the contribution, price minus variable cost, is left to cover the fixed costs.

How do I find break-even in sales dollars?

Divide the fixed costs by the contribution margin ratio. $9,000 of fixed costs at a 40% ratio: $9,000 ÷ 0.4 = $22,500.

What if the price is below the variable cost?

Then every sale loses money before any fixed cost, and no number of units breaks even. Raise the price or cut the variable cost.

What is the margin of safety?

How far sales could fall before break-even, as a share of current sales. With 40 customers and break-even at 30, it is 10 ÷ 40 = 25%.

Related free tools

Formulas and examples checked against Doing Math’s verified lesson Break-Even, September 27, 2026. Every number on this page is computed by the calculator’s own code.