Find the number of units needed to cover fixed costs using price and variable cost per unit.
Markup, margin, break-even and profit calculations for pricing and operating decisions.
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With $10,000 fixed costs and $20 contribution margin per unit, break-even is 500 units.
Find the number of units needed to cover fixed costs using price and variable cost per unit. It is designed for quick estimates and everyday problem solving. When a calculation affects a contract, tax filing, medical decision or other high-stakes situation, verify the result with the appropriate professional or authoritative source.
Selling a product for $80 with $50 in variable costs leaves $30 per sale to cover fixed expenses. If fixed costs are $12,000, break-even volume is $12,000 ÷ $30 = 400 units. The 401st unit begins generating operating contribution after fixed costs are recovered.
What to check: Price and variable cost must use the same unit. Break-even assumes a stable mix, no changes in fixed costs, and that every unit produced is sold; it is not the same as a cash-flow forecast.
Compare with the Profit Margin calculator when that better matches the question you are trying to answer.
Find the number of units needed to cover fixed costs using price and variable cost per unit.
Break-even units = fixed costs ÷ (price per unit − variable cost per unit).
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