How this calculator works
Each unit contributes selling price minus variable cost. Dividing fixed costs by this amount gives a theoretical threshold. Because partial units may not be sold, the primary result rounds up and revenue uses that whole-unit count. Costs and prices are assumed constant.
The formula
Contribution per unit = Price − Variable cost
Theoretical units = Fixed costs / Contribution per unit
Whole units = round up theoretical units
Revenue = Whole units × Price.A quick example
With fixed costs of 10,000, a price of 20 and variable cost of 12, contribution is 8. Break-even is 1,250 units and revenue is 25,000.
How to use this calculator
- Enter fixed costs for your chosen period.
- Enter selling price and variable cost for one unit.
- Review whole-unit break-even and the revenue needed at that quantity.
A few common questions
Why round up the number of units?
Rounding down could leave part of the fixed costs uncovered.
What if price equals variable cost?
No contribution remains to cover fixed costs, so the calculator rejects zero or negative contribution.
Does this include a target profit?
No. It calculates the threshold that covers the entered fixed and variable costs.