Break-Even Calculator
Find out how many units you need to sell before you stop losing money. Fixed costs are things such as rent and salaries that do not change with sales.
How it works
Break-even units = fixed costs ÷ (price − variable cost per unit). With fixed costs of 50,000, a price of 200 and a variable cost of 120, each sale contributes 80, so you need 625 units, or 125,000 in sales.
Questions
Why does it show 0 units?
If the price is not above the variable cost, each sale loses money or makes nothing, so you can never break even at that price.
What counts as a variable cost?
Costs that rise with each unit sold, such as materials, packaging and sales commission.
Over what period should fixed costs be?
Any period works. Use monthly costs to get the units needed per month.
Results are estimates for planning. They are not tax, legal or financial advice.
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