Break-Even Price Calculator

Break-even units equal fixed costs divided by the margin per unit (price minus variable cost).

Quick answer

Break-even units equal fixed costs divided by the margin per unit (price minus variable cost). With the default inputs (Fixed costs $25,000, Price per unit $79, Variable cost per unit $31) the result is Break-even units 520.83, Break-even revenue $41,146, Margin per unit $48.

Method

Margin per unit = price per unit - variable cost per unit. Break-even units = fixed costs / margin per unit. Break-even revenue = break-even units x price per unit.

If the margin per unit is zero or negative there is no break-even volume, because each unit sold adds nothing toward fixed costs; the tool then shows 0, which means not reachable rather than already broken even.

Worked example

Fixed costs	$25,000
Price per unit	$79
Variable cost per unit	$31
Break-even units	520.83
Break-even revenue	$41,146
Margin per unit	$48

Assumptions and limits

Assumes price and variable cost per unit stay constant at every volume.
Fixed costs are treated as one lump sum for the period you are analysing; taxes and financing costs are not modelled.

Educational estimate only. It is not financial, tax, legal, or investment advice.

FAQ

How do you calculate break-even units?

Divide fixed costs by the margin per unit. With the defaults ($25,000 fixed, $79 price, $31 variable cost) break-even is 520.83 units.

What is margin per unit?

Selling price minus variable cost per unit. With the defaults it is $48.

What is break-even revenue?

Break-even units multiplied by the selling price. With the defaults it is $41,146.

What if my price is below my variable cost?

Then the margin is zero or negative and no number of units reaches break-even; raise the price or cut variable costs.

Is my data stored?

No. The calculation runs in your browser and the inputs are not sent to or saved by this site.