How to use this tool
- Enter fixed costs, selling price per unit, variable cost per unit.
- Select Calculate to view the result.
- Check the method and assumptions below before using the result.
The method, explained
Break-even units = fixed costs ÷ (selling price − variable cost), rounded up to a whole unit.
Fixed costs of 5,000, a unit price of 50 and unit costs of 30 require 250 units to break even.
What to keep in mind
Assumes one product, constant prices, and constant variable cost per unit. If unit cost meets or exceeds price, additional sales cannot cover fixed costs.
Common questions
Why is the result rounded up?
You must sell complete units. Selling a fraction less than the mathematical threshold does not cover all costs.
What belongs in fixed costs?
Include costs that do not vary with units sold for the period, such as rent. Do not count them again as per-unit variable costs.
Methodology maintained by ClarityKit. How these tools are built and checked.