How to use this calculator
Use one consistent period for fixed costs, such as a month or a single project. Enter the selling price and all variable costs for one unit. Keep every monetary value in the same currency.
The formula
A worked example
With $1,000 fixed costs, a $25 price and $10 variable cost, each sale contributes $15. The theoretical break-even is 66.67 units, so sell 67 whole units for $1,675 revenue.
Assumptions & limitations
Assumes one product, constant price and variable cost, and unlimited ability to sell the calculated units. The selling price must exceed variable cost for a finite positive contribution. Taxes and financing are not separately modeled.
Common questions
What if my price is below my variable cost?
Each additional sale increases the loss before fixed costs. With positive fixed costs, this model has no finite break-even point in that case.
Is break-even the same as a profit goal?
No. It covers the costs included. A target profit would need additional contribution.
Supporting reference
The method above states this calculator’s assumptions. This reference provides related definitions and technical context.
U.S. Small Business Administration: break-even analysis ↗Formula and worked example checked against automated test cases. About our methodology.