Break-even analysis calculator
Break-even is fixed costs divided by the contribution each unit makes after its own variable cost.
Break-even units
925.9
- Break-even revenue
- 41 666.67
- Contribution per unit
- 27.00
- Contribution margin
- 60.00 %
- Profit at expected sales
- 7400.00
- Margin of safety
- 22.84 %
- Units for 10 000 of profit
- 1296.3
Show the working
- Fixed costs = 25 000
- Price per unit = 45
- Variable cost per unit = 18
- Expected sales = 1200
- Contribution per unit = 45 - 18 = 27
- Contribution margin = 45 > 0 ? 27 / 45 * 100 : 0 = 60
- Break-even units = 27 > 0 ? 25 000 / 27 : 0 = 925.926
- Break-even revenue = 925.926 * 45 = 41 666.7
- Profit at expected sales = 1200 * 27 - 25 000 = 7400
- Margin of safety = 1200 > 0 ? (1200 - 925.926)/1200*100 : 0 = 22.8395
- Units for 10 000 of profit = 27 > 0 ? (25 000 + 10000) / 27 : 0 = 1296.3
Values are shown to six significant figures here; the arithmetic itself runs on exact fractions and is only rounded where a number is printed.
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The formula
- break-even units = fixed costs / (price - variable cost)
A negative or zero contribution means no volume will ever break even; the price has to change.