The unit count where you stop losing money.
Three inputs — fixed costs, price per unit, variable cost per unit — and we find the volume that crosses revenue with cost. Below that line you subsidize each sale; above it, every sale is profit.
Built and reviewed by Stephen Omukoko Okoth
Mathematical Economist · ex-Morgan Stanley FI · Equilar
Inputs
Cost & price
Verdict
Break even at 667 units.
$ 33.3K of revenue clears all costs.
Contribution margin per unit = $ 30. Each unit you ship past break-even drops that much straight to operating profit.
Result
Margin & markup
Contribution margin
$ 30
Per unit
Gross margin
60.0%
Markup over cost
150.0%
Break-even units
667
Trajectory
Revenue vs cost
Common questions
What is the break-even point?
The number of units you need to sell so that total revenue equals total cost. Below it you're losing money on every batch; above it you're making money.
What's contribution margin?
Price per unit minus variable cost per unit — what each sale contributes toward covering fixed costs. Break-even units = fixed costs ÷ contribution margin.
Should I price by margin or by markup?
Margin is profit as a percentage of price; markup is profit as a percentage of cost. They're easily confused. The calculator computes both so you don't accidentally undercharge.
What's the difference between fixed and variable costs?
Fixed costs don't change with volume — rent, salaries, software. Variable costs scale per unit — materials, packaging, transaction fees, commission. Many costs are mixed; estimate the variable portion.