Calculate Break-Even Revenue and Sales Units
Enter monthly fixed costs, average selling price and variable cost per sale. The result shows contribution per sale and rounds required units upward because a fraction of a sale cannot cover the remaining cost.
Find the first whole unit that covers fixed cost
The default example uses $8,000 fixed cost and $300 contribution per sale.
- Break-even revenue
- $13,500
- Contribution per unit
- $300
- Contribution margin ratio
- 60.0%
Find the sales volume that covers entered operating costs
Calculate monthly break-even units and revenue from fixed costs, average selling price and variable cost per unit or service package.
Review realised economics in the profit margin calculator and set service pricing through the project fee calculator.
Protect contribution per sale
Price must exceed variable cost
Otherwise additional sales cannot cover fixed cost.
Use a capacity check
Required units may exceed the time or demand available.
- Calculation method
- Fixed costs divided by selling price minus variable cost per unit.
- Best used for
- Testing whether a service package, product or recurring offer can support its fixed cost base.
- Keep outside the result
- Tax, financing, capacity limits, mixed products, payment delay and owner income above break-even.
Contribution funds fixed cost
Only the amount left after variable cost is available to cover fixed overhead.
A zero or negative contribution has no break-even volume
Raising volume cannot solve a sale that loses money before fixed costs.
Add an income target deliberately
If the business must support owner income, include that target in the fixed monthly requirement or calculate a higher target volume.
Find the first whole unit that covers fixed cost in a worked example
The default example uses $8,000 fixed cost and $300 contribution per sale. Selling price minus variable cost creates contribution per sale. Fixed cost is divided by that contribution and required units are rounded upward to a complete sale. If price does not exceed variable cost, higher volume cannot produce a valid break-even point.
- Monthly fixed costs
- $8000
- Average selling price per unit
- $500
- Variable cost per unit
- $200
Break-even units per month: 27 units
Compare required units with realistic delivery capacity and demand before relying on the result.
- Break-even revenue
- $13,500
- Contribution per unit
- $300
- Contribution margin ratio
- 60.0%
Calculation rule: Fixed costs divided by selling price minus variable cost per unit. Boundary: Tax, financing, capacity limits, mixed products, payment delay and owner income above break-even.
Break-even questions
Why round units upward?
The next complete sale is required to cover the remaining fixed cost.
Does break-even include owner income?
Only if the target owner amount is included in fixed costs.
Can I use average price?
Yes, but a changing sales mix can make the average misleading.
Move from break-even volume to sustainable income
Track salary, freelance, rental and business income with source-level records, cash timing, direct costs and a separate tax reserve.