Break even calculator: divide fixed costs by price minus variable cost. $10,000 fixed, a $25 price, and a $10 variable cost break even at 667 units ($16,675).
Units to Break Even
667
Break-even units = fixed costs / (price per unit - variable cost per unit), rounded up to a whole unit. Break-even revenue = units * price
667 units is the break-even point when fixed costs are $10,000, the price is $25, and variable cost is $10. A break even calculator uses break-even units = fixed costs / (price per unit - variable cost per unit). The contribution margin is $25 - $10 = $15, and $10,000 / $15 = 666.67 units. The first whole unit that covers every fixed dollar is 667, and break-even revenue is 667 x $25 = $16,675. At 666 units the contribution is 666 x $15 = $9,990, which is $10 short.
For paid hours instead of unit sales, use the time card calculator, the timesheet calculator, or the punch clock calculator.
Break-even units = fixed costs / (price per unit - variable cost per unit), rounded up to a whole unit. Break-even revenue = units * price
Fixed costs are $10,000, variable cost is $10, and price is $25. Contribution margin is $25 - $10 = $15. Break-even units are $10,000 / $15 = 666.67, so the first whole unit that covers fixed costs is 667. Break-even revenue is 667 x $25 = $16,675. At 666 units the contribution is 666 x $15 = $9,990, which is $10 short.
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Break-even units = fixed costs / (price per unit - variable cost per unit). The denominator is the contribution margin. With $10,000 fixed, a $25 price, and a $10 variable cost, the margin is $15 and the exact break-even point is 666.67 units.
Divide fixed costs by the contribution margin, then round up to a whole unit when you cannot sell a fraction. $10,000 / $15 = 666.67, so this break even calculator returns 667 units.
Multiply the whole units required by the price per unit. 667 x $25 = $16,675. That revenue covers $10,000 of fixed costs and $6,670 of variable costs (667 x $10), leaving $5 of profit.
Contribution margin per unit is price minus variable cost. It is the amount each sale contributes toward fixed costs and then profit. At a $25 price and a $10 variable cost, the margin is $15.
There is no break-even point. Each sale loses money or only covers its own variable cost, so fixed costs are never recovered. The calculator shows N/A until price is above variable cost.
No. It covers unit sales, not work hours. For paid hours with an unpaid lunch, use the time card calculator, the timesheet calculator, or the punch clock calculator.