Business
Find the sales volume and revenue needed to cover fixed costs, variable costs and optional target profit.
Calculator
Contribution margin per unit = selling price − variable cost per unit. Break-even units = fixed costs ÷ contribution margin. Units for target profit = (fixed costs + target profit) ÷ contribution margin. Break-even revenue = rounded-up units × selling price.
This is the method behind the answer, so the result can be checked rather than simply trusted.Result: 167 units. Assumption: Selling price and variable cost per unit are treated as averages that stay constant across the range being checked.
Contribution margin per unit = selling price − variable cost per unit. Break-even units = fixed costs ÷ contribution margin. Units for target profit = (fixed costs + target profit) ÷ contribution margin. Break-even revenue = rounded-up units × selling price.
Fixed costs of 5,000 divided by a 30 contribution margin gives 166.67 units. Because you cannot normally sell 0.67 of a unit, the practical target is 167 units. At 50 per unit, that is 8,350 revenue before tax or other adjustments.
Master’s Tip: use contribution margin after real per-sale costs, not just material cost. Marketplace fees, card fees, packaging, freight subsidies, refunds and labour can turn an apparently safe break-even point into a loss.
Standard or basis: transparent contribution-margin arithmetic. The calculator is currency-neutral and does not claim tax, accounting or financial-advice authority.
Methodology & Accuracy
CalculationTime pages are built around visible arithmetic: the formula, assumptions, worked example and practical limitations are shown so the result can be checked rather than simply trusted.
Contribution margin per unit = selling price − variable cost per unit. Break-even units = fixed costs ÷ contribution margin. Units for target profit = (fixed costs + target profit) ÷ contribution margin. Break-even revenue = rounded-up units × selling price.
Standard or basis: transparent contribution-margin arithmetic. The calculator is currency-neutral and does not claim tax, accounting or financial-advice authority.
Where a calculator follows a named legal, trade or industry standard, that standard is cited visibly. Otherwise the page uses transparent general arithmetic and states its limits.Master’s Tip: use contribution margin after real per-sale costs, not just material cost. Marketplace fees, card fees, packaging, freight subsidies, refunds and labour can turn an apparently safe break-even point into a loss.
Break-even point is the sales volume where total contribution margin equals fixed costs, so profit is zero before any target profit is added.
Subtract variable cost per unit from selling price to get contribution margin, then divide fixed costs by that contribution margin.
The exact formula may return a fraction, but a practical sales plan normally needs whole units, jobs or orders. Rounding down would leave costs uncovered.
Then contribution margin is zero or negative, so break-even is not reachable through volume at that price. Price, cost or business model must change first.
No. Use tax-exclusive or net-of-tax values consistently, then apply local tax rules separately.
Break-even analysis is a simple management-accounting tool: it separates fixed costs from per-unit contribution so a price or launch plan can be checked before money is committed.
Revenue alone does not cover fixed costs. Each sale first has to pay its own variable cost, and only the remaining contribution can help recover fixed costs. That is why the calculator makes contribution margin visible in the result support text.
Breaking even means the entered fixed costs are covered under the stated assumptions. It does not include cash timing, inventory risk, taxes, owner wages, customer acquisition volatility or whether enough demand exists at the chosen price.
Adding target profit turns the calculation from “How many sales cover costs?” into “How many sales cover costs and leave this profit?” The same contribution margin formula handles both, but the business decision is different.