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A practical business break-even scenario
For this example, use monthly fixed costs of 18,000, selling price per unit of 120, variable cost per unit of 48, and target monthly profit of 10,000. These are starting values, so replace them with numbers that match your situation.
Monthly fixed costs: 25% lower
Change monthly fixed costs to 13,500 while keeping the other example values the same.
Monthly fixed costs: 25% higher
Change monthly fixed costs to 22,500 while keeping the other example values the same.
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Quick answer
What does the Business break-even calculate?
How many sales cover fixed and variable costs? This calculator uses monthly fixed costs, selling price per unit, variable cost per unit, and target monthly profit to estimate break-even volume immediately in your browser.
With the values currently entered, the result is 250 units — to break even. It also shows units for target profit, contribution / unit, and break-even revenue.
How to use the Business break-even
- Replace the example values with your own numbers.
- Review the result and supporting figures as they update automatically.
- Check the formula and assumptions before using the estimate for a decision.
Inputs used
- Monthly fixed costs
- Selling price per unit
- Variable cost per unit
- Target monthly profit
Business break-even formula
(Fixed costs + target profit) ÷ contribution margin per unit
Assumptions
- Price and unit cost remain constant.
- All products are represented by one average unit.
Practical guide
Business break-even example and edge cases
How many sales cover fixed and variable costs? Let's use a concrete example, then look at the assumptions that can move the answer.
Example: A practical business break-even scenario
For this example, use monthly fixed costs of 18,000, selling price per unit of 120, variable cost per unit of 48, and target monthly profit of 10,000. These are starting values, so replace them with numbers that match your situation.
- Monthly fixed costs
- 18,000
- Selling price per unit
- 120
- Variable cost per unit
- 48
- Target monthly profit
- 10,000
Calculated result250 unitsto break even
Start with to break even. Then check units for target profit, contribution / unit, and break-even revenue to understand what sits behind the main result.
Example results use the default display profile. The calculator above follows your selected country and units.
How to read the result
- Read the main result first. The supporting figures for units for target profit, contribution / unit, and break-even revenue explain how the estimate is built.
- The method is (Fixed costs + target profit) ÷ contribution margin per unit. Keep the units consistent and use values from the same time period.
Edge cases worth checking
When monthly fixed costs is unusual
Price and unit cost remain constant. Double-check this input before relying on the result.
When target monthly profit is uncertain
All products are represented by one average unit. Run a lower and higher value to see a useful range.
What changes the result most
Monthly fixed costs
Use a current amount for monthly fixed costs. Include fees or recurring costs that belong in the same figure.
Selling price per unit
Use a current amount for selling price per unit. Include fees or recurring costs that belong in the same figure.
Variable cost per unit
Use a current amount for variable cost per unit. Include fees or recurring costs that belong in the same figure.
Try a different scenario
Small changes show whether the answer is stable or sensitive.
Monthly fixed costs: 25% lower
13,500188 unitsto break even
Monthly fixed costs: 25% higher
22,500313 unitsto break even
Selling price per unit: 25% higher
150177 unitsto break even
Common mistakes
Check monthly fixed costs
Price and unit cost remain constant. Make sure this matches the number you enter.
Keep target monthly profit consistent
All products are represented by one average unit. Use the same units and time period throughout the calculation.
Do not rely on one business break-even scenario
Run a cautious case and an optimistic case. The range is often more useful than one exact-looking number.
Use this result well
How many sales cover fixed and variable costs?
It does not replace a quote, contract, accountant, or local employment guidance.