MyCalculatorHow it works
Contribution margin per unit is Price − Variable cost. Break-even units is Fixed costs ÷ Contribution margin. Break-even revenue is Break-even units × Price.
Example
Fixed costs of 10,000, a price of 50 and variable cost of 30 gives a contribution margin of 20, so break-even is 500 units, or 25,000 in revenue.
Assumptions & limitations
Assumes price and variable cost stay constant regardless of volume, which is a simplification — real costs can change at scale.
Frequently asked questions
What if price equals variable cost?
There's no break-even point — every unit sold adds zero contribution toward fixed costs.