The result is useful for product launches, small businesses, events, and other decisions where you need to know the sales volume required to cover costs.
The difference between selling price and variable cost is your contribution per unit. Fixed costs divided by that contribution gives the break-even volume, rounded up to the next whole unit.
Start with fixed costs: expenses that stay broadly the same regardless of how many units you sell. Then enter the selling price and variable cost per unit.
How to Calculate Break-Even Units
Use break-even analysis to test scenarios
- Change the selling price to test pricing options
- Increase variable costs to model higher fulfillment costs
- Adjust fixed costs for a new event or launch
- Test conservative and optimistic sales assumptions separately
How this calculator works
Example
With $1,200 fixed costs, a $25 selling price, and $10 variable cost per unit, break-even is 80 units.
Important assumptions
Results are planning estimates. Replace the default assumptions with your actual costs, rates, shipping arrangements, discounts, and sales volume. Marketplace and payment fees can change over time.