Break Even Units
Free Break Even Units calculator with clear step-by-step results.
About Break Even Units
Break-even is the volume at which revenue exactly covers fixed and variable costs.
Formula
Formula
Break-even = fixed costs ÷ (price − variable cost)
Worked example
With the default values below, Break Even Units returns Break-even Units of 3,125.0. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Fixed costsminimum 0 $
- 50,000 $
- Price per unitminimum 0 $
- 40 $
- Variable cost per unitminimum 0 $
- 24 $
Results
- Break-even Units
- 3,125.0
- Break-even Revenue
- $125,000.00
- Contribution per Unit
- $16.00
Step by step
- 1Values used
- 2Formula
- 3Break-even Units= 3,125.0
- 4Break-even Revenue= $125,000
- 5Contribution per Unit= $16.00
Assumptions and limits
- The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax or compounding frequency into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How does this calculator work?
Break-even is the volume at which revenue exactly covers fixed and variable costs.
Why does this matter?
Below break-even the business loses money.