Contribution per unit
Selling price minus variable cost per unit.
BUSINESS & PRICING
Break-Even Calculator
Estimate how many units you need to sell to cover fixed and variable costs.
Break-even units—
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Break-even explained
Break-even units
Fixed costs divided by contribution per unit.
After break-even
Sales beyond the break-even point begin contributing to profit, assuming costs stay as entered.
Frequently asked questions
What are fixed costs?
Costs that do not directly change with each unit sold, such as certain rent or software costs.
What are variable costs?
Costs that change with the number of units produced or sold.
Why must price exceed variable cost?
If each unit loses money before fixed costs, selling more units cannot reach break-even under this model.