Each unit sold contributes its contribution margin toward covering fixed costs. Break-even is where total revenue equals total cost.
Rent, salaries, overhead that do not vary with units sold.
Per-unit cost and selling price.
Optional forecast to see profit and margin of safety.
See break-even units, revenue, and crossover chart.
Fixed $10,000/mo, variable $15/unit, price $35/unit.
Break-even at 500 units or $17,500 revenue.
Mixing monthly and annual fixed costs
Fix: Keep fixed costs and sales volume in the same time period.
Forgetting hidden variable costs
Fix: Include shipping, commissions, and materials per unit.
Calculate break-even units and revenue from fixed costs, variable cost per unit, and selling price.
Optional — used for profit and margin of safety.
Result
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Enter fixed costs, variable cost, and price per unit, then click Calculate.