Break-even Calculator
Enter fixed costs, unit selling price and unit variable cost to calculate how many sales cover your costs. You can also enter a target profit. I round quantities up to whole units and show revenue at that quantity. Use figures for the same period and in the same currency.
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How to use it
- 1Enter fixed costs for one period.
- 2Enter unit price and unit variable cost.
- 3Optionally add target profit.
- 4Review rounded quantities and revenue.
Example
Fixed costs of 1000, price 100 and variable cost 60 give 25 break-even units and revenue of 2500. A target profit of 200 requires 30 units.
Formula and assumptions
- Break-even units = ceil(fixed costs / (unit price − unit variable cost)).
- Target units = ceil((fixed costs + target profit) / unit contribution). Revenue = rounded break-even units × price.
- Price and variable unit cost are assumed constant; assess tax and financing separately.
Frequently asked questions
What if price equals cost?
Why round quantities up?
Is revenue profit?
How is target profit included?
Does it suit every business model?
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