What does "contribution margin" mean?

It's the selling price per unit minus the variable cost per unit -- the amount each unit sold contributes toward covering your fixed costs before you start turning a profit.

What happens once I sell more than my break-even volume?

Every unit sold beyond the break-even point contributes its full margin directly to profit, since fixed costs are already covered by that point.

calculators Client-Side Only

Break-Even Calculator

Calculate unit volume and revenue needed to cover fixed and variable business costs.

Total Fixed Costs ($)

Selling Price Per Unit ($)

Variable Cost Per Unit ($)

Break-Even Units

500 Units

Break-Even Revenue

$25,000

Contribution Margin / Unit

$20

Quick Reference & Instructions

Simple steps, pro tips, and execution details

Enter Your Numbers

Type in your initial amounts, interest rates, or investment duration below.

Live Instant Calculation

Watch the charts, returns, and breakdown tables update immediately as you tweak numbers.

Copy or Plan Next Steps

Copy summary results or use the visual breakdown to make informed financial decisions.

How It Works

Determines the exact point where total revenue equals total operating costs.

Formula & Logic

Break-Even Units = Fixed Costs / (Selling Price Per Unit - Variable Cost Per Unit)

Example: With $10,000 fixed costs, $50 price, and $30 variable cost, you need 500 units ($25,000 revenue) to break even.

Frequently Asked Questions

Common questions about calculations, assumptions, and edge cases.

Fixed costs (rent, salaries, insurance) stay the same regardless of how many units you sell; variable costs (materials, per-unit shipping) scale up and down with production volume.