How to use Break-Even Calculator
- Enter your total fixed costs.
- Enter the selling price and variable cost per unit.
- Read the break-even units and revenue.
About this tool
Break-even units = fixed costs / (price - variable cost per unit). The difference between price and variable cost is the contribution each sale makes toward covering fixed costs.
If the price is not higher than the variable cost, you can never break even, and the tool reports that.
Frequently Asked Questions
- What are fixed costs?
- Costs that do not change with sales volume, such as rent, salaries and software subscriptions.
- What are variable costs?
- Costs per unit sold, such as materials, packaging and payment fees.
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