BUSINESS
Break-even calculator
Estimate break-even units, contribution per unit, target-profit volume and margin of safety.
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No regional currency, unit or language profile is applied. This choice does not convert values or change formulas, results, routes or legal guidance.
Break-even units
833Contribution per unit: $60.00- Units for target profit
- 1,000
- Revenue at break-even
- $83,333.33
- Profit at planned units
- $10,000.00
- Margin of safety
- 167 units
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Verification and calculation details
- Purpose
- Break-even calculator
- Variables and units
- Use the labelled fields and units shown in the calculator. Results use those units unless a conversion is stated.
- Formula and method
- The exact formula and worked example are shown below. Deterministic formula executed locally in the browser.
- Assumptions
- Only entered values and stated assumptions are included. Local fees, rules and professional requirements are excluded unless explicitly shown.
- Engine version
- 1.0.0
- Production verification baseline
- Release 63 · source
998803f - Verification run
release-v63-2026-09-20- Last verified
- — Automated release checks passing
Read the Calculation Standard · Report a calculation or source issue
How this calculator works
Contribution per unit = selling price − variable cost. Break-even units = fixed costs ÷ contribution per unit. Units for target profit = (fixed costs + target profit) ÷ contribution per unit.
Variables and inputs
- Fixed costs
- Required numeric input. finite numeric value; calculator-specific validation applies.
- Selling price per unit
- Optional numeric input. finite numeric value; calculator-specific validation applies.
- Variable cost per unit
- Optional numeric input. finite numeric value; calculator-specific validation applies.
- Target profit
- Optional numeric input. finite numeric value; calculator-specific validation applies.
- Planned units
- Optional numeric input. finite numeric value; calculator-specific validation applies.
How to interpret the result
The calculator returns contribution margin per unit, break-even units, break-even revenue, units required for target profit, planned profit and margin of safety. Read each output against the assumptions you entered, compare alternatives one variable at a time, and use the result as an estimate rather than a promise.
Common mistakes to avoid
- Mixing units or entering a rate as a decimal when the field requests a percentage.
- Rounding intermediate values instead of the final displayed result.
- Leaving out a cost, timing rule or local requirement listed in the assumptions below.
Practical uses
Use the break-even calculator to check a real scenario, compare a changed assumption and explain the arithmetic before relying on a quote, specification or decision.
Worked example
With $50,000 fixed costs, a $100 selling price and $40 variable cost, contribution is $60 per unit and break-even is about 834 units. A $10,000 target profit needs about 1,000 units.
Assumptions and limitations
- selling price and variable cost per unit remain constant across the planned volume
- fixed costs remain unchanged and every produced unit is sold in the modelled period
- results are estimates; confirm rates, prices, units and professional requirements that apply
Important notes
Results are estimates based on the values entered. Confirm rates, prices, units and professional requirements that apply in your location. Review the Answer Atlas Calculation Standard and corrections policy for formula, privacy and correction rules.
Frequently asked questions
What does break-even mean?
Break-even is the sales volume where contribution covers fixed costs. Above that level, each additional unit contributes toward profit before other changing costs.
What if variable cost is higher than selling price?
The calculator will not show a useful break-even result because each unit loses money before fixed costs are covered.
Does this include taxes, refunds or overhead changes?
No. Enter the costs that apply to your model and review tax, refunds, discounts, platform fees and capacity separately.