Break-Even Calculator — Units & Revenue Break-Even Point
Who this is for: For entrepreneurship and managerial-accounting students — and for anyone pricing a product who needs to know exactly how many units cover the rent before a single dollar of profit shows up.
Not the right tool for: Multi-product mixes — you need a weighted-average contribution margin first; this prices one product · Step-fixed or semi-variable costs — the model is linear; capacity jumps and volume discounts bend it
Fixed costs, price per unit, variable cost per unit — get break-even units, break-even revenue, and the profit at any volume.
Quick answer: Break-even units = fixed costs ÷ (price − variable cost). $12,000 fixed, $25 price, $15 variable → $10 contribution per unit → 1,200 units, or $30,000 in revenue at a 40% contribution margin ratio. At 1,500 units profit is $3,000; at 1,000 it's −$2,000.
Rent, salaries, insurance…
Materials, shipping, fees
| Units sold | Revenue | Operating profit |
|---|---|---|
| 600 | $15,000 | -$6,000 |
| 900 | $22,500 | -$3,000 |
| 1,200 ← break-even | $30,000 | $0 |
| 1,500 | $37,500 | $3,000 |
| 1,800 | $45,000 | $6,000 |
| 2,400 | $60,000 | $12,000 |
| Formula | BE units = fixed ÷ (price − variable cost) |
|---|---|
| Worked example | $12,000 fixed, $25 price, $15 variable → 1,200 units / $30,000 revenue |
| Contribution | $10/unit; CM ratio 40% |
| Profit check | 1,500 units → +$3,000; 1,000 units → −$2,000 |
| Compiled | October 2026 |
What break-even computes
Every unit sold contributes its price minus its variable cost toward the fixed costs; break-even is the moment those contributions have swallowed the fixed block. Break-even units = fixed costs ÷ (price − variable cost). With $12,000 of monthly fixed costs, a $25 price, and $15 of variable cost, each sale contributes $10 and the business breaks even at 1,200 units — $30,000 of revenue. The contribution margin ratio (40% here) tells the revenue story: 40 cents of every sales dollar goes to fixed costs and then profit, so $30,000 × 40% = $12,000 exactly covers them. Beyond that point the same $10 margin is pure operating profit: 1,500 units make $3,000; 1,000 units lose $2,000. The model is linear by design — real semi-variable costs and step-fixed capacity jumps bend the line, so re-run the numbers when volume moves into a different cost tier.
Common uses
- Pricing homework: how many units before the venture is viable
- Testing a price change: a $2 price cut raises break-even units and you can see by how much
- Business-plan revenue targets with a stated contribution margin
- Managerial accounting practice on CVP (cost-volume-profit) relationships
Where these numbers come from
All results are computed in your browser from the standard closed-form formulas (and a numerical root-finder where no closed form exists — rates, IRR, YTM). Formulas follow the ordinary-annuity (END) convention used by the BA II Plus and HP 12C. Educational reference only — not investment, tax, or accounting advice.