PALLAS / CALCULATOR
Break-even Calculator
Work out contribution per unit, contribution margin and the sales volume needed to cover fixed costs.
INPUT
Enter values
Method & formula
Every unit contributes its selling price minus variable cost towards fixed costs. Break-even is reached when those contributions add up to the fixed-cost total. Because most products cannot be sold as fractions, the calculator also shows the next whole unit required.
- Contribution per unit = selling price per unit − variable cost per unit
- Contribution margin % = contribution per unit ÷ selling price per unit × 100
- Break-even units = fixed costs ÷ contribution per unit
- Break-even revenue = break-even units × selling price per unit
Example
With fixed costs of 10,000, a selling price of 100 and variable cost of 60, each unit contributes 40. Break-even is 250 units, or 25,000 in revenue.
FAQ
Why can the break-even point be unavailable?
If contribution per unit is zero or negative, selling another unit does not help cover fixed costs. There is therefore no positive break-even volume under those assumptions.
Why show exact units and whole units?
The mathematical result can include part of a unit. If your product cannot be sold fractionally, the next whole unit is the practical threshold.
What belongs in variable cost per unit?
Use costs that change when you sell one more unit. Keep fixed costs separate so the calculation remains meaningful.