Covering fixed costs
With fixed costs of 5,000.00, unit price of 45.00 and variable cost of 20.00, each sale contributes 25.00. Break-even requires 200 units and 9,000.00 revenue.
Costs and production capacity
Use the same period as fixed costs.
Zero is allowed.
Assumes a single product, constant price, constant variable cost and fixed costs within capacity. Whole-unit targets round upward. Planned volume may exceed capacity for comparison.
Volume needed to cover costs
200Whole units to break even
280Whole units for target profit
Target fits within entered capacity. Capacity profit: $5,000.00.
| Item | Value |
|---|---|
| Contribution per unit | $25.00 |
| Contribution ratio | 55.56% |
| Exact break-even volume | 200 units |
| Whole-unit break-even revenue | $9,000.00 |
| Profit at planned sales | $1,250.00 |
| Units sold | Revenue | Profit / loss |
|---|---|---|
| 0 | $0.00 | -$5,000.00 |
| 200 | $9,000.00 | $0.00 |
| 280 | $12,600.00 | $2,000.00 |
| 400 | $18,000.00 | $5,000.00 |
Calculations run in your browser. Inputs are not uploaded or saved by this calculator.
How to use the Break-Even Calculator
- 01
Choose a period and enter its fixed costs, selling price per unit, and variable cost per unit.
- 02
Enter a profit target, maximum unit capacity, and planned sales for that same period.
- 03
Review the whole-unit break-even and target volumes, capacity check, and profit table. Use the CSV to preserve your assumptions.
Examples
A target within capacity
A 2,000.00 profit target under the same assumptions requires 280 units. Capacity of 400 units can support that target. Planned sales of 250 units produce 1,250.00 modeled profit.
Contribution funds fixed costs first
Contribution per unit is price minus variable cost. Dividing fixed costs by that contribution gives exact break-even volume. Whole units round upward. A profit target adds to fixed costs before division. Price must exceed variable cost; otherwise selling additional units cannot fund positive fixed costs.
Capacity keeps the scenario grounded
The tool compares target units with maximum capacity and shows profit at capacity. It also accepts planned volume above capacity so the inconsistency can be inspected. Fixed costs, unit price and variable cost are assumed constant throughout the comparison.
What to know
- A constant-cost, single-product scenario; no taxes or financing costs are added automatically.
- Whole-unit break-even revenue differs from revenue at the fractional mathematical threshold.
Common questions
Why are there exact and whole-unit results?
The exact threshold can include a fraction of a unit. The whole-unit result is the minimum integer sales quantity that reaches or exceeds break-even.
What if fixed costs are zero?
With positive unit contribution, break-even is zero units. A positive profit target can still require sales.
Can I combine several products?
This model uses one product or a consistent composite unit. Different product margins and a changing sales mix need a broader model.
Does capacity guarantee those sales?
No. Capacity is the maximum volume you enter; demand, collection risk, inventory timing and cash flow are outside this calculation.