Accounting Calculator
Break-even Calculator
Calculate unit contribution, contribution margin, break-even units, break-even sales and target-profit units.
Calculator
Formulas
- Unit contribution = Unit price − Unit variable cost
- Break-even units = Fixed costs ÷ Unit contribution
- Break-even sales = Break-even units × Unit price
- Target units = (Fixed costs + Target profit) ÷ Unit contribution
Worked Example
Example: fixed costs of 100,000, unit price of 50 and variable cost of 30 require 5,000 units to break even.
Result Explanation
If unit price is not greater than unit variable cost, each sale cannot contribute toward fixed costs.
Use Cases
- New product planning
- Fixed-cost investment review
- Target-profit sales planning
Frequently Asked Questions
Why must price exceed variable cost?
A positive contribution per unit is required to cover fixed costs.
Can target profit be blank?
Yes. A blank target profit is treated as zero.
Accounting and Tax Disclaimer
These calculators provide general accounting, tax and business estimates only. Rules differ by jurisdiction, industry and accounting policy. Confirm formal filings, bookkeeping entries, audits and business decisions against applicable regulations and professional advice.
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