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VELNARO

Break-Even Calculator

Break-even is the point where total revenue equals total costs. Enter your fixed costs, variable cost per unit and selling price to find the number of units and the revenue you need.

Break-even units

1,000 units

Break-even revenue

$50,000.00

Contribution margin per unit

$20.00

Contribution margin %

40%

How this was worked out

  1. Step 1Contribution per unit = 50 − 30 = $20.00
  2. Step 2Units = (fixed costs) ÷ contribution
  3. Step 3Units = 20,000 ÷ 20 = 1,000

Assumes costs and price stay constant across the period and that everything produced is sold.

Formula

Break-even units = fixed costs ÷ (selling price − variable cost per unit)

Example

Input

Fixed costs $20,000, price $50, variable cost $30

Result

1,000 units ($50,000 revenue)

Frequently asked questions

Fixed costs stay the same regardless of volume (rent, salaries, insurance). Variable costs change with each unit (materials, packaging, shipping).

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