Launch planning
Estimate the minimum unit volume required to cover stated costs.
Free · Money & business · No account needed
Break-even calculator
Estimate the units and sales needed to cover fixed and variable costs.
No account needed. Nothing is saved automatically.
Your inputs
Starting values are examples, not recommended rates.
Your estimate
- Units to break even
- 250units
- Sales at rounded break-even
- 125,000USD
- Contribution per unit
- 200USD
Use costs and sales from the same period. Assumes constant prices, constant unit cost and one product. No finite break-even exists at a non-positive unit contribution.
How this tool works
Break-even units = fixed costs / (unit price − variable cost per unit), rounded up to whole units.
What should I check before using the result?
Use costs and sales from the same period. Assumes constant prices, constant unit cost and one product. No finite break-even exists at a non-positive unit contribution.
SBA break-even formulaDo free tools require an account?
No. Public UtilityHub tools open without an account. An account is required only when you want a workspace to save records, collaborate with a team or use paid product features.
Are the public tools really free?
Yes. The tools listed in the public tools directory are free to use. They do not start a subscription and do not ask for a card.
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Your work stays in this session
Nothing is added to your business workspace unless you choose to continue there.
Review the method
Break-even units = fixed costs / (unit price − variable cost per unit), rounded up to whole units.
Check before using the result
Use costs and sales from the same period. Assumes constant prices, constant unit cost and one product. No finite break-even exists at a non-positive unit contribution.
Practical guidance
Use the result with confidence
Break-even occurs when total contribution covers fixed costs. The result is rounded up to a whole unit because a fraction of a unit normally cannot be sold.
Before you finish
- All figures use the same period.
- Price exceeds variable cost.
- The single-product assumption fits the decision.
Original process diagram
Break-even flow
1List fixed cost
2Find unit contribution
3Calculate required units
Evidence and accountability
- Written by
- UtilityHub Product Team
- Reviewed by
- Calculation Review
- Last reviewed
- 2026-09-20
- Method guide
- Open related guide
Reproducible worked example
Cover $50,000 of fixed costs
A business sells one unit for $500, with $300 of variable cost per unit and $50,000 of fixed costs for the period.
Example inputs
- Fixed costs
- $50,000
- Price per unit
- $500
- Variable cost per unit
- $300
Replace these example values in the calculator or generator to reproduce the result.
Calculation
- Contribution per unit = $500 − $300 = $200
- Break-even units = $50,000 ÷ $200 = 250
- Break-even sales = 250 × $500 = $125,000
- Units to break even
- 250 units
- Sales at break-even
- $125,000
What this shows: each unit contributes $200 toward fixed costs, so 250 units cover $50,000.
Assumptions
- Price and variable cost stay constant.
- Every unit uses the same cost structure.
Limits of the result
- Product mix, capacity limits and cash timing are excluded.
- Break-even is not a forecast of demand or profit.
Common uses
Price testing
See how a different price changes required sales volume.
Cost review
Measure the effect of fixed or variable cost changes.
Recommended workflow
- 1Choose one period and enter fixed costs for that period.
- 2Enter selling price and variable cost for the same unit.
- 3Review contribution per unit and rounded break-even volume.
- 4Stress-test lower sales or higher costs before deciding.
Questions
Why are break-even units rounded up?
A fraction of a unit usually cannot be sold, so the tool rounds to the next whole unit needed to cover costs.
What if variable cost is above price?
There is no finite break-even point because every additional unit loses money before fixed costs.
Does break-even mean the business has cash?
Not necessarily. The formula does not model payment timing, inventory purchases, debt or tax.