Break-Even Calculator

What this tool can do

Calculate break-even units. Include a target profit. Show contribution per unit and contribution margin. Calculate required revenue and variable cost.

Formula and methodology

Break-even units = (fixed costs + target profit) ÷ (unit price − variable cost per unit).

Worked example

With €10,000 fixed costs, a €100 price, and €60 variable cost, break-even is 250 units and €25,000 revenue.

Separate fixed and variable costs

Fixed costs stay broadly unchanged across the calculation period. Variable costs rise with each unit delivered or sold.

Whole units are rounded up

A fractional break-even result is rounded up because the next complete unit is required to cover the remaining cost.

Privacy

Calculations and draft documents run in your browser. Entered values are not included in FollowIncome analytics events.

Next step

Use the result as a planning aid, then track actual invoices, payments, expenses and projects in FollowIncome.

Frequently asked questions

What is the break-even formula?

Divide fixed costs plus target profit by selling price minus variable cost per unit.

What if variable cost is higher than price?

There is no positive break-even point because each additional unit increases the loss.

Should salary be fixed or variable?

Classify it according to how it behaves in the period and decision being modeled.

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