ClarityHow 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.
Input reference and sample values
Use the units and choices shown for each field. Sample values are provided for practice, not as recommendations.
| Input | Format and units | Sample |
|---|---|---|
| Fixed costs | Numeric value. Zero or positive. | 5000 |
| Selling price per unit | Numeric value. Minimum: 0.01. | 50 |
| Variable cost per unit | Numeric value. Zero or positive. | 30 |
Result for these sample inputs
250 units
- Sales at break-even
- 12500
- Contribution per unit
- 20
Select Try the example in the form to load these values and calculate them again. This replaces the current form inputs. Compare the result with the method and worked explanation below.
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.