Business Break-Even Calculator: Units, Revenue & Profit

Cover fixed costs with unit contribution

Each sale contributes its selling price minus variable cost toward fixed costs. Once total contribution covers fixed costs, additional contribution becomes operating profit under this simplified model. Use the same period for fixed costs and expected volume.

Contribution per unit = price − variable cost.
Break-even units = fixed costs ÷ contribution per unit.
Whole units required = break-even units rounded up.
Profit at expected volume = volume × contribution − fixed costs.

Example: 250 units to cover costs

With fixed costs of 5,000, a selling price of 50, and variable cost of 30, each unit contributes 20. Break-even is 250 units, generating 12,500 in revenue. Selling 300 units gives estimated operating profit of 1,000.

Why must price exceed variable cost?

A positive contribution is needed to cover fixed costs through sales. The tool reports an error when price is equal to or below variable cost. Costs and prices are assumed constant, one product is modeled, and taxes, financing, and changes in capacity are excluded.

About this tool

Prepared by the UtilitiesWeb team at The Alpha 1 Company. Review results before using or sharing them. Business calculations are educational estimates and do not replace professional accounting, tax, or legal advice.

Methodology updated: 1 November 2026. Inputs are processed locally; clearing or leaving the page releases the working result.