Break-Even Units Calculator

Fixed monthly costs

sum of costs that do not change with unit volume

$500.00

= $500.00

Costs that don't change with sales volume.

Cost-volume-profit fixed cost input

Contribution margin per unit

Sale price − Variable cost per unit

$25.00 − $8.00 = $17.00

= $17.00

How much each sale contributes to covering fixed costs and profit.

Contribution margin formula

Contribution margin %

(Contribution margin ÷ Sale price) × 100%

($17.00 ÷ $25.00) × 100% = 68.0%

= 68.0%

What percentage of each sale is available to cover fixed costs and profit.

Contribution margin ratio

Break-even units

Fixed costs ÷ Contribution margin per unit

$500.00 ÷ $17.00 = 30 units

= 30 units

The minimum number of units you must sell each month to have $0 profit or loss.

Standard break-even quantity formula from cost-volume-profit analysis

Break-even revenue

Break-even units × Sale price per unit

30 × $25.00 = $750.00

= $750.00

Total revenue needed to cover all costs and break even.

Break-even revenue identity

Margin of safety

expected units − break-even units

50 − 30

= 20 units (40.0%)

This shows how far expected sales sit above break-even before the business slips into a monthly loss.

Margin of safety formula from cost-volume-profit analysis

Monthly profit at expected volume

(Expected units × Contribution margin) − Fixed costs

(50 × $17.00) − $500.00 = $350.00

= $350.00

At your expected volume of 50 units/month, you'll make $350.00.

Projected operating profit formula

Operating status

compare expected units to break-even units

50 ≥ 30

= Profitable

This is the summary verdict from the break-even math: below break-even, at break-even, or profitable.

Cost-volume-profit decision rule