Break-Even Calculator

Determine the exact number of units you need to sell to cover your costs.

Compare breakeven speed versus a target-profit goal, then see how pricing or volume changes the gap in units and monthly runway.
Contribution margin
$25
CM ratio
62.5%
Revenue need
$8,000
Cost at plan volume
$9,500

Break-Even Units

200
Exact
200 units
Revenue
$8,000
CM ratio
62.5%
Markup
166.7%
Horizon
0.7 mo
Margin of safety
33.3%
Cost vs Revenue Preview
Margin 62.5%Revenue $8,000Total Cost $9,500Profit Gap $2,500
Break-even cost versus revenue chartfixed costbreakeven288 units
Step-by-step breakdown
  1. Contribution margin (unit): Price − Variable cost = $40 − $15 = $25
  2. Contribution margin ratio: CM ÷ Price = 25 ÷ 40 = 62.5%
  3. Markup on variable cost: CM ÷ Variable cost = 25 ÷ 15 = 166.7%
  4. Break-even units: Fixed ÷ CM = $5,000 ÷ 25 = 200 units
  5. Break-even revenue: Units × Price = 200 × $40 = $8,000
  6. Margin of safety: (Plan − BE units) ÷ Plan = (300 − 200) ÷ 300 = 33.3%
Scenario Tips
  • Reduce variable cost by $1/unit to lower breakeven units by 9 units.
  • Increase price by $2/unit to raise CM to $27 and shrink recovery time and monthly funding need.
  • If you can grow monthly volume, speed to breakeven improves linearly while margin is positive.
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