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//// Business · Break-Even

Break-Even Units Calculator

How many units to break even? Enter fixed costs, variable costs per unit, and sale price to see your break-even point and margin of safety.

Where this fits

📦 Business & Seller OpsFounders

This tool sits in the business & seller ops domain and connects best with the next tools in that decision lane.

Corp Tax Rate21%
SE Threshold$400
FICA Cap 2024$168,600

Fixed & Variable Costs

Break-Even Analysis

Break-Even Units

30

units per month

Break-Even Revenue

$750.00

revenue per month

You're profitable at your current volume

Expected profit: $350.00/month. You need 30 units to break even; you expect 50.

Contribution/Unit
$17.00
Contribution %
68.0%
Margin of Safety
20
Expected Profit
$350.00
1

Fixed monthly costs

sum of costs that do not change with unit volume

$500.00

= $500.00

Costs that don't change with sales volume.

Cost-volume-profit fixed cost input

2

Contribution margin per unit

Sale price − Variable cost per unit

$25.00 − $8.00 = $17.00

= $17.00

How much each sale contributes to covering fixed costs and profit.

Contribution margin formula

3

Contribution margin %

(Contribution margin ÷ Sale price) × 100%

($17.00 ÷ $25.00) × 100% = 68.0%

= 68.0%

What percentage of each sale is available to cover fixed costs and profit.

Contribution margin ratio

4

Break-even units

Fixed costs ÷ Contribution margin per unit

$500.00 ÷ $17.00 = 30 units

= 30 units

The minimum number of units you must sell each month to have $0 profit or loss.

Standard break-even quantity formula from cost-volume-profit analysis

5

Break-even revenue

Break-even units × Sale price per unit

30 × $25.00 = $750.00

= $750.00

Total revenue needed to cover all costs and break even.

Break-even revenue identity

6

Margin of safety

expected units − break-even units

50 − 30

= 20 units (40.0%)

This shows how far expected sales sit above break-even before the business slips into a monthly loss.

Margin of safety formula from cost-volume-profit analysis

7

Monthly profit at expected volume

(Expected units × Contribution margin) − Fixed costs

(50 × $17.00) − $500.00 = $350.00

= $350.00

At your expected volume of 50 units/month, you'll make $350.00.

Projected operating profit formula

8

Operating status

compare expected units to break-even units

50 ≥ 30

= Profitable

This is the summary verdict from the break-even math: below break-even, at break-even, or profitable.

Cost-volume-profit decision rule

#ShowYourWork

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