Break-even units are fixed costs divided by (price minus variable cost per unit), rounded up. If price is not above variable cost, the page says you cannot break even.
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| Contribution per unit | 25 |
|---|---|
| Break-even units | 480 |
| Break-even revenue | 19,200 |
Revenue uses the exact unit count times price. The unit count on screen is rounded up, which matches 480 exactly in this example.
| Output | Calculation |
|---|---|
| Contribution | price − variable cost |
| Units | ceil(fixed costs ÷ contribution) |
| Revenue | (fixed costs ÷ contribution) × price |
| Price at or below variable cost | The message "Price must exceed variable cost" |
The break-even point is the number of units you must sell before you start making a profit, and every small business plan should know it. Enter your total fixed costs (rent, salaries, software and anything that does not change with volume), the price you sell each unit for, and the variable cost of producing one unit (materials, shipping, payment fees). This calculator finds the contribution margin per unit, then divides your fixed costs by it to give the break-even quantity, and multiplies that by price to show the break-even revenue. If the selling price is not above the variable cost, it tells you plainly that you can never break even at that price. Use it to test pricing, model a new product, or set a sales target. All math runs in your browser.
Fixed costs of 12,000, a price of 40 and a variable cost of 15 break even at 480 units and 19,200 of revenue.
If the price is not above the variable cost, contribution is zero or negative and no quantity covers the fixed costs.
No. The math runs in the browser.
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