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Units needed to cover fixed and variable costs.
Free to use, no sign-up required. Break-Even is one of 198 tools built into Xenition, alongside a chat that can use them for you.
Finds the point where sales exactly cover costs. Unit mode answers how many units you must sell at a set price; Price mode answers what you must charge per unit to cover costs at a set volume.
Unit mode: break-even units = fixed costs ÷ (price − cost per unit), rounded up to a whole unit; revenue = the exact unit figure × price. If the price does not exceed the unit cost there is no margin and no answer. Price mode: break-even price = (fixed costs + total variable cost) ÷ number of units.
Fixed costs of 5,000, a price of 25 and a unit cost of 10 give a 15 contribution margin, so 5,000 ÷ 15 = 333.3, shown as 334 units and 8,333.33 in revenue. In Price mode, 5,000 fixed plus 2,000 variable over 500 units needs a price of 14.
Fixed costs stay the same whatever you sell, such as rent and salaries. Variable costs rise with every unit, such as materials and packaging.
You cannot sell a third of a unit, and selling 333 would still leave a small loss. The first whole unit that covers all costs is 334.
You do not have to open Break-Even to use it. Ask Xenition in plain language and it runs the right tool, then carries the answer into whatever you are working on — a document, a spreadsheet, a deck.