What if my contribution per unit is zero or negative?

At that price and variable cost, each sale does not contribute toward fixed costs. Raising price or lowering variable cost is necessary to reach break-even.

Homebreak even calculator

Break-Even Point Calculator

Estimate the number of units and sales revenue needed to cover fixed and variable costs.

Fixed costs for the period ($)Selling price per unit ($)Variable cost per unit ($)Target profit for the period ($)

Contribution per unit

$30.00

Break-even units

100

Break-even sales revenue

$5,000.00

Units for target profit

100

Formula and assumptions

Break-even units = fixed costs ÷ (selling price per unit − variable cost per unit), rounded up.

Planning estimate only. Results depend on the values and assumptions entered and are not accounting, tax, legal, or financial advice.

Frequently Asked Questions

It is the sales level where total revenue equals fixed costs plus variable costs, so the business has neither a profit nor a loss for the period.