Break-Even Calculator
Find the number of units you need to sell to cover fixed costs — and how many more to hit a target profit.
With €10,000.00 in fixed costs and a contribution margin of €20.00 per unit (40.0% of price), you need to sell 500 units — that's €25,000.00 in revenue.
Results update as you type. Match the period of fixed costs to the period you want to break even over (e.g. monthly fixed → monthly break-even units).
Formula
Break-even units come from a single division:
units = fixed_costs / (price − variable_cost).
The denominator is the contribution margin per unit. Add a target profit to budget upward:
units = (fixed + target_profit) / (price − variable_cost).
The result is rounded up because partial units don't sell — selling 142 of 142.86 leaves you
short of break-even.
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Frequently asked questions
What counts as fixed vs variable cost?▾
Fixed: rent, salaries (and the employer social charges that come with them), insurance, software, accountancy. Variable: cost of goods sold, packaging, payment processing, per-unit logistics, sales commission. EU social charges on salaries are technically tied to headcount, not sales volume, so they're fixed for break-even purposes — though they jump when you hire.
What is contribution margin?▾
The euros each sale contributes to covering fixed costs after its own variable cost is paid. €50 sale at €30 variable cost = €20 contribution. As a ratio (€20 / €50 = 40%), it tells you what fraction of revenue is left over to cover overheads. Higher contribution margin = fewer units to break even.
Why is the unit count rounded up?▾
Selling 142.86 units isn't possible — you sell whole units. If the maths needs 142.86 to cover costs, 142 is short and 143 is the first whole number that breaks even. The exact decimal is shown for transparency; the ceiling is the practical answer.
Does this work for a service business?▾
Yes — treat the billable hour, day, or fixed-fee engagement as your unit. €120/hour consultant: price/unit = €120, variable = direct costs of delivering an hour (subcontractor fees, software, travel). Fixed = monthly overhead. The result is billable hours per month to break even.
Should I include VAT?▾
No — use VAT-exclusive figures throughout (price net of VAT, variable cost net of any reclaimable VAT). VAT collected from customers passes to the tax authority and isn't yours; including it inflates the contribution margin artificially.
Monthly, quarterly, or annual?▾
Whichever you want — but the period of the fixed-cost figure determines the period of the answer. Monthly fixed costs → monthly break-even unit count. Annual → annual. Don't mix (yearly fixed with monthly target profit) — the answer becomes meaningless.