Business

Break-Even Units Calculator

Work out how many units a business must sell before it starts making a profit.

Fixed costs ($)
Selling price per unit ($)
Variable cost per unit ($)

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The result shows the number of units that must be sold before fixed costs are covered, and the revenue figure beside it is the sales value of those units, so selling fewer units means a loss and selling more means the extra sales start to add profit.

Formula

Break-even units = fixed costs divided by (selling price per unit minus variable cost per unit). The difference between price and variable cost is what each sale contributes toward fixed costs.

How it works

Enter your fixed costs, such as rent and salaries, then the price you charge and what each unit costs to make or deliver. The calculator divides fixed costs by the contribution from each sale. Selling more than the break-even number of units means the extra sales start to add profit.

Worked example

For example, with fixed costs of $5,000, a selling price of $50 per unit and a variable cost of $30 per unit, each sale contributes $20 toward fixed costs, so 5,000 divided by 20 gives 250 units, which is about $12,500 in revenue at the break-even point.

FAQs

What if my price barely covers variable cost?
Then break-even is very high, because each sale contributes almost nothing toward fixed costs. Raising price or cutting variable cost brings break-even down.

Are fixed costs monthly or one-off?
Use the same period for every input. For a monthly break-even figure, use monthly fixed costs.

Does this include tax?
No, this is a simple pre-tax estimate. Add tax and other charges separately if you need an after-tax view.

Estimates only, not financial advice. Check your figures before making a business decision.