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Contracts, proposals, and invoicing built for freelancers.
Visit tool →Break-Even Calculator (Units)
Units sold so contribution margin covers fixed overhead for that horizon.
Calculator
Break-even units
412 units
Results are simplified estimates for educational purposes only and should not be treated as financial, accounting, legal, or tax advice. See our disclaimer for details.
Overview
Use when marginal economics are stable enough to pretend one average SKU. Step-changing costs (new warehouse) need a fresh run when crossed.
Formula
Fixed costs ÷ (price per unit − variable cost per unit). Tool rounds up to whole units when margin positive.
Example calculation
Using the default example values from the JSON seed for this tool:
- Fixed costs (period)
- 28000
- Selling price per unit
- 120
- Variable cost per unit
- 52
Result: 412 units (Break-even units)
How to interpret this result
Units required so contribution margin covers fixed costs for the period you chose.
Assumes one average price and variable cost per unit—mix changes the truth.
Step-fixed costs need a new run when you cross hiring or capacity thresholds.
When to use this calculator
- When you know fixed costs for a period and need units to cover them
- Before you take on equipment or rent that bumps fixed cost
- When price or variable cost shifts and you want a fresh unit count
- When you want a quick check on whether current volume is anywhere near break-even
Rule of thumb
You assumed one average price and variable cost. Product mix washes that simplicity away in real carts.
Terms used in this calculator
- Net profit (quick model)
- Revenue minus a lump sum of expenses you chose to lump for a planning pass—not audited net income.
- Gross margin
- Sales minus COGS as a percentage of revenue—nothing below gross profit counted here.
Common mistakes
- Negative or zero contribution margin per unit.
- Allocating fixed costs to the wrong time window.
- Ignoring MOQ or step costs in variable cost.
What to do next
If units look huge, revisit price, variable cost, or fixed cost inputs before cutting spend blindly.
How to improve this result
- Lower fixed costs or increase contribution margin.
- Increase price if value supports it.
- Improve variable costs with better suppliers or packaging.
Recommended tools
Useful tools for this calculator
These tools are related to the topic of this calculator. Some links may be partner links.
ProfitWell
Pricing and retention resources for subscription businesses.
Visit tool →Wave
Free invoicing and accounting tools for small businesses.
Visit tool →FAQ
- Negative margin?
- Selling more never fixes negative unit contribution—fix price or variable cost first.
- Include semi-variable costs?
- Split into fixed + per-unit components honestly or results lie.
- Does this cover corporate overhead?
- Only fixed costs you loaded into the field—expand scope deliberately.
- Compare to cash runway?
- Break-even units ignore timing of receivables—cash modeling still matters.
- Multiple SKUs?
- Blend cautiously or run per-SKU tables when mix shifts.
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Open calculator →Affiliate disclosure
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