01
Formula
Units = fixed costs ÷ (price − variable cost).
Break-even sales = units × price. Contribution is the denominator. The page refuses the math when the contribution is zero or negative.
Apply for financingBreak even
Break even calculator for units and sales
This break even calculator divides fixed costs by the contribution of one unit. Contribution is price minus variable cost. The result is how many units have to be sold before fixed costs are covered. It is not a forecast, not an approval, and not a promise that the business will get there.
Break-even units
333.33
Break-even sales$8,333.33
Contribution each$15.00
Fixed costs$5,000.00
Illustrative estimate only, not a financing offer. The rate is an assumption you set. Actual rates, terms and payments depend on a financing provider’s review.
How it works
Break-even units equal fixed costs divided by contribution.
Five thousand dollars of fixed costs, a $25 price, and a $10 variable cost leave $15 of contribution. Break-even volume is 333.33 units. Break-even sales are $8,333.33. If the variable cost is not below the price, there is no break-even, and the page says so. Fixed costs are the costs that do not move with the unit. If a cost moves, it belongs in the variable field. This break even calculator is one product at one price. A mix of products needs a weighted contribution you compute first.
02
Example
$5,000 fixed, $25 price, $10 variable.
Contribution is $15. The break even calculator shows 333.33 units and $8,333.33 of sales. Raise the price and the unit count falls. Raise the variable cost and it climbs.
03
Tips
Do not hide labor in fixed if it is paid per unit.
A crew paid by the piece is variable. Rent is fixed until the lease changes. Mixing them makes a break-even that will not match the bank statement. This illustration does not include taxes.
04
Equipment
The machine's payment belongs in fixed costs if you are studying it.
Dengaro arranges equipment financing and does not promise approval. Type a payment you are illustrating into fixed costs if you want it in the break-even. The button does not send these dollars as an approved amount.
Important questions
Know what to expect.
What if price equals variable cost?+
Contribution is zero and there is no finite break-even. The page asks you to keep the price above the variable cost.
Does this handle more than one product?+
Not in one pass. Build a weighted contribution per unit of the mix, then enter that as the price and variable cost of one 'unit' of the mix.
Are the dollars a projection Dengaro stands behind?+
No. They are the costs and the price you typed. Dengaro does not forecast your sales and does not approve credit from this page.
Should debt payments be fixed?+
If you want them in the study, include the payment you are illustrating in fixed costs. That does not mean the payment is offered.
Financing built into the sale