Find the unit volume and revenue at which contribution exactly covers fixed costs.
Each unit sold contributes its price less variable cost toward fixed costs; break-even is reached when those contributions exactly cover them. The margin of safety shows how far volume can fall before the business moves into loss. Break-even volume is the single most useful number when pricing a new product, because it converts an abstract margin into a concrete sales target.
Break-Even Point
Break-even units = fixed costs ÷ (price − variable cost per unit)
Break-even units = fixed costs ÷ (price − variable cost per unit) Each unit sold contributes its price less variable cost toward fixed costs; break-even is reached when those contributions exactly cover them. The margin of safety shows how far volume can fall before the business moves into loss.
Break-even volume is the single most useful number when pricing a new product, because it converts an abstract margin into a concrete sales target.
This calculator takes 4 inputs: Fixed costs per period, Selling price per unit, Variable cost per unit, Units you expect to sell. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.