Contribution Margin per Unit and Total Calculator
Check the contribution earned by each unit sold.
Business
Break-even Units and Sales Revenue Calculator
Calculate the sales volume at which contribution covers your fixed costs. Use figures for the same period and a positive unit contribution; the whole-unit result rounds required sales upward.
Your numbers
How the calculation works
Find the sales volume needed to cover fixed costs when each sale contributes a positive amount. The tool distinguishes the theoretical break-even point from the whole-unit threshold required when partial units cannot be sold.
Break-even units = fixed costs / (unit price − variable unit cost). Break-even revenue = break-even units × unit price. Whole-unit threshold rounds the volume upward.
Calculate contribution per unit
Subtract variable unit cost from selling price. This model requires positive contribution. With positive fixed costs, selling more at zero or negative contribution cannot cover those fixed costs.
Calculate the theoretical threshold
Divide fixed costs by unit contribution. Multiplying this quantity by selling price gives theoretical break-even revenue under constant price and cost assumptions.
Convert to saleable whole units
Round the theoretical quantity upward when units are indivisible. The tool shows revenue and profit at this whole-unit threshold, which can be above exact break-even.
Worked example: Exact threshold
Sample inputs demonstrate the method. They are not a forecast or product offer.
Fixed costs of €10,000 are covered by €20 contribution from each sale priced at €50 with €30 variable cost. €10,000 divided by €20 gives 500 units, corresponding to €25,000 revenue at exact break-even.
- Currency
- EUR — euro
- Fixed costs for the period
- 10000
- Selling price per unit
- 50
- Variable cost per unit
- 30
Expected result
- Theoretical break-even units
- 500
- Theoretical break-even revenue
- €25,000.00
Worked example: Whole-unit threshold
Sample inputs demonstrate the method. They are not a forecast or product offer.
- Currency
- EUR — euro
- Fixed costs for the period
- 100
- Selling price per unit
- 12
- Variable cost per unit
- 5
Expected result
- Theoretical break-even units
- 14.2857
- Whole units needed
- 15
- Profit at whole-unit threshold
- €5.00
Understanding your result
Break-even volume is a requirement implied by the cost structure, not a prediction of sales. Demand, production capacity and access to working capital need separate consideration.
A large required volume may extend beyond the range where fixed costs stay fixed or discounts apply. Recalculate a new scenario when staffing, capacity, selling price or product mix changes.
Questions you might have
Why is there no break-even result when variable cost exceeds price?
Every extra unit increases the loss before fixed costs. A finite positive sales volume cannot solve that scenario.
Choosing the right inputs
- Fixed costs for the period
- Use fixed costs for the period being analysed. They should remain approximately constant across the sales range you want to assess.
- Selling price per unit
- Enter selling price per unit on the same tax basis and product unit as variable cost. Do not compare pack revenue with single-item cost.
- Variable cost per unit
- Include costs that change with each additional unit. Keep the fixed-period expenses outside this amount so they are not deducted twice.
Common mistakes to avoid
- Do not round a fractional break-even quantity down if only whole units can be sold.
- Do not treat one product's contribution as representative of a changing multi-product sales mix without a justified common basis.
Assumptions to check
- Choose EUR or USD and enter every monetary input in that currency. The selector changes labels, not values; no exchange conversion is performed.
- Use costs and sales for the same period. The unit contribution must be positive.
Sources and method
Read our calculation and testing approach.