The units and revenue that cover your fixed costs exactly.
Break-even units
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Break-even revenue
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Contribution margin / unit
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Units for target profit
Cost structure at break-even
A simplified single-product model — it assumes price and variable cost per unit stay constant at every volume, which is not always true in practice (bulk discounts, capacity limits).
How this works
Contribution margin = Price − Variable cost per unit
Break-even units = Fixed costs ÷ Contribution margin
Break-even revenue = Break-even units × Price
Every unit sold above the break-even point contributes its full margin straight to profit, since fixed costs are already covered.
Raising the price or cutting variable cost per unit lowers the break-even point faster than cutting fixed costs, because it improves every single unit's contribution.
If variable cost per unit is greater than or equal to the price, there is no break-even point at any volume — each sale loses money.
Currency
Amounts follow the currency selected above.
What is the difference between fixed and variable costs?
Fixed costs stay the same regardless of how much you sell — rent, salaries, insurance. Variable costs scale with each unit — materials, packaging, per-unit shipping.
What is contribution margin?
The amount each unit sold contributes toward covering fixed costs, after its own variable cost is paid: price minus variable cost per unit. Once enough units are sold to cover fixed costs, every further unit's contribution margin is pure profit.
How do I find units needed for a specific profit target, not just break-even?
Add the target profit to fixed costs before dividing by the contribution margin: (fixed costs + target profit) ÷ contribution margin. Enter it in the target profit field above.
What is the break-even point formula in units?
Break-even units = fixed costs ÷ (price per unit − variable cost per unit). The denominator is the contribution margin — what each unit contributes toward fixed costs after covering its own variable cost.