How to use the Break-Even Calculator
Break-even units = Fixed costs ÷ (Price − Variable cost per unit). The amount each sale contributes after variable costs is the contribution margin.
Use it before launching a product, opening a new outlet or committing to rent: if the break-even number looks unrealistic, change the price, cut costs or rethink the plan.
Frequently asked questions
What counts as a fixed cost?
Costs that do not change with sales volume in the short term: rent, salaries, software subscriptions, loan EMIs.
What if price is lower than variable cost?
Then every sale loses money and there is no break-even point. You need to raise prices or reduce variable costs.