Fixed costs 1,000; price 25; variable cost 10
1,000 ÷ (25 − 10) = 66⅔ units
Selling 66 whole units gives revenue 1,650 and total costs 1,660: a loss of 10. Selling 67 units gives revenue 1,675 and costs 1,670: a profit of 5.
Business costs and sales
Break-Even Calculator
Find how many units you need to sell to cover costs, then explore a target profit.
Enter costs and selling price
Minimum whole units without a loss
Enter your costs and price, then select Calculate.
All money values use the currency you entered. Whole units are rounded upward from the exact threshold.
- Contribution per unit
- Contribution margin ratio
- Theoretical break-even units
- Theoretical break-even revenue
- Revenue at minimum whole units
- Profit at minimum whole units
Sales needed for your target profit
- Minimum whole units for target
- Theoretical target units
- Revenue at target whole units
- Profit at target whole units
Calculation steps
≈ marks a rounded display. The whole-unit minimum always uses the exact inputs. This model assumes every unit is sold at the same price and cost.
Calculations run in your browser. This is a planning model, not a sales forecast or a calculation of taxes.
From a threshold to a sales goal
Add a profit goal of 500
(1,000 + 500) ÷ 15 = 100 units
At 100 units, revenue is 2,500. Variable costs are 1,000, and fixed costs are 1,000, leaving exactly 500 under these assumptions.
Fixed costs 600; price 20; variable cost 8
600 ÷ 12 = 50 units
50 units cover costs exactly. The 51st sale adds 12 of profit if the price and costs remain unchanged. There is no need to round 50 up to 51.
Formulas and scope
Let F be fixed costs, P selling price per unit, V variable cost per unit, and Q units sold. The model's profit is Q × (P − V) − F. Contribution per unit is P − V; the contribution margin ratio is (P − V) ÷ P, displayed as a percentage.
The theoretical break-even quantity is F ÷ (P − V). The corresponding revenue is that quantity times P, or equivalently fixed costs divided by the contribution margin ratio. For a target profit T, use (F + T) ÷ (P − V). Whole-unit goals use the smallest integer at or above the exact quantity.
This is a single-product model with a constant unit price, constant variable cost per unit, and fixed total costs over the sales range considered. It assumes the units being evaluated are sold. It does not combine products with different margins or automatically add inventory changes, taxes, financing, capacity limits, step costs, or quantity discounts.
The model requires positive contribution per unit. If price equals variable cost, sales add nothing toward fixed costs. If price is lower, each sale increases the loss. With zero fixed costs, zero sales already has zero profit; if contribution is also zero, every quantity has zero profit. Those nonpositive-contribution cases are outside this calculator's sales-target model.
Accepted decimal inputs are represented exactly, and the whole-unit minimum is found without first rounding a quotient. Displayed decimals use your selected precision; exact halfway values round away from zero. Display rounding does not change the minimum sales count. The result is only as applicable as your cost and price assumptions.
References: OpenStax, contribution margin and break-even analysis.
Common questions
Why is there both theoretical revenue and whole-unit revenue?
The theoretical threshold solves for zero profit and can involve a fraction of a unit. If you sell only complete items, you need the next whole quantity. That quantity may produce a small profit, so its revenue can be higher than theoretical break-even revenue.
Is contribution margin the same as net profit margin?
No. Contribution subtracts variable costs from sales. Fixed costs must still be covered before the remaining amount becomes the profit in this model. Other costs or taxes you have not included can change actual net profit.
Can I use monthly fixed costs with an annual profit goal?
Convert them to the same period first. For example, an annual model needs annual fixed costs and an annual profit target. Do not assume multiplying by 12 is appropriate if costs change during the year.
What if my result is more units than I can produce or sell?
The calculator does not estimate demand or capacity. A high required quantity can be a reason to revisit price, costs, or the goal. Expanding capacity can introduce new fixed costs, so recalculate with the costs that apply to that larger sales range.
Does changing decimal places change the units I need?
No. A theoretical threshold can look like an integer after display rounding while still being slightly above it. The minimum whole units uses the original inputs, which avoids understating the sales needed.