Business & investing
Break-Even Calculator
Fixed costs are the bills you pay whatever you sell, like rent and salaries. Variable costs rise with each unit, like materials and shipping. Add a profit target to see how many units it takes to hit it.
Your result will appear here.
How it's calculated
Each unit sold leaves the price minus its variable cost to cover fixed costs. That amount is the contribution margin. Divide the fixed costs by it and you have the units needed to break even.
Break-even units = Fixed costs ÷ (Price − Variable cost)
How to do it in Excel
=ROUNDUP(B1/(B2-B3), 0)- Fixed costs in B1, price in B2, variable cost in B3.
=ROUNDUP((B1+B4)/(B2-B3), 0)- Units for the profit target in B4.