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About this tool
How many units you must sell to cover your costs.
The Break-Even Units Calculator answers one question in three inputs: how many units you must sell to cover your costs, calculated as fixed costs ÷ (price per unit − variable cost per unit), rounded up to a whole unit. Type in your fixed costs, selling price and variable cost and it returns the unit count along with contribution margin per unit and the break-even revenue that goes with it. It is the quick version for anyone who wants the number itself rather than a full cost-volume-profit model.
Open Break-Even Units Calculator on AltFTool — it loads instantly in your browser.
Enter your fixed costs, such as rent, salaries, and equipment expenses, into the Break-Even Units Calculator to establish your baseline expenses.
Input the price per unit you plan to charge for your product or service, considering market conditions, competition, and target profit margins.
Specify the variable cost per unit, which includes direct costs like materials, labor, and packaging, to get a comprehensive view of your cost structure.
Fixed cost, price and variable cost are all it needs, so you get the unit count in one screen rather than filling in a forecasting model.
Break-even units are rounded up, because 500.4 units means you have to sell 501 to actually clear your costs.
When price is equal to or below variable cost the contribution margin is not positive, so the tool reports that instead of printing a break-even figure that could never be reached.
Break-even units = fixed costs ÷ (price per unit − variable cost per unit). With ₹10,000 in fixed costs, a ₹50 price and ₹30 variable cost, the contribution margin is ₹20 per unit and break-even is 500 units.
It is the selling price minus the variable cost of one unit — the amount each sale contributes toward fixed costs and then profit. At a ₹50 price and ₹30 variable cost, contribution margin is ₹20, or 40 percent of the price.
Fixed costs stay the same whatever you sell — rent, salaries, tooling, a stall fee, software subscriptions. Variable costs move with each unit — materials, packaging, payment-gateway fees, per-order shipping and sales commission.
Because every extra unit then adds to the loss, so no sales volume ever covers the fixed cost. The contribution margin must be greater than zero; raise the price or cut per-unit cost until price exceeds variable cost.
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