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Money

Break-even calculator — units and revenue needed

Estimate how many units must sell to cover fixed and per-unit costs. Add a profit target to see the additional sales required under the same pricing assumptions.

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Rent, salaries, tooling — costs that do not change with volume.

Materials, shipping, payment fees.

Enter fixed costs, a price and a variable cost.

Sets formatting only.

This models one product at a fixed selling price and cost per unit. Discounts, changing costs and a mix of products can change the break-even point.

How to use

  1. Choose a period for fixed costs. For a monthly plan, enter that month’s fixed costs, such as rent and subscriptions.
  2. Enter selling price and variable cost per unit. Use one currency and a consistent tax basis. Include costs that arise with each sale.
  3. Read the sales requirement. With €10,000 monthly fixed costs, a €25 selling price and €15 variable cost, each unit contributes €10. Break-even is 1,000 units and €25,000 revenue that month.
  4. Add a target if needed. A €5,000 profit target under those same assumptions requires 1,500 units in the month.

Questions

Why is contribution different from profit?

Contribution is the amount left from each sale after its variable cost. It first covers fixed costs. Only after those are covered does the model show a profit.

Why might revenue not equal displayed units times price?

The main unit count rounds up to a whole unit, but break-even revenue uses the unrounded threshold. For example, a threshold of 10.2 units requires 11 whole units to cover costs; revenue from selling 11 will be higher than the displayed threshold revenue.

What if price does not cover variable cost?

With fixed costs still to cover, selling at or below variable cost cannot pay them off. The calculator reports that the model has no break-even point. It assumes one product and constant costs and price; discounts, product mix and capacity changes need separate scenarios.

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