Contribution per unit
$20.00
Formula and inputs used
P − V
- Selling price per unit
- $50.000000
- Variable cost per unit
- $30.000000
Finance · transparent analysis
Break-Even Calculator
Break-even is the volume at which revenue covers fixed and variable costs. Positive fixed costs require a positive contribution per unit to be covered.
Results
Example calculated; edit any figure to recalculate.
Positive contribution: costs can be covered at the calculated volume.
Contribution margin ratio
40.00%
Formula and inputs used
(P − V) / P × 100
- Selling price per unit
- $50.000000
- Variable cost per unit
- $30.000000
Break-even units (selected rounding)
500
Required units round upward; selected revenue uses that quantity.
Formula and inputs used
F / (P − V)
- Selling price per unit
- $50.000000
- Variable cost per unit
- $30.000000
- Total fixed costs
- $10,000.000000
Continuous break-even revenue
$25,000.00
Formula and inputs used
Continuous units × P
- Selling price per unit
- $50.000000
- Variable cost per unit
- $30.000000
- Total fixed costs
- $10,000.000000
Revenue at selected break-even units
$25,000.00
Required units round upward; selected revenue uses that quantity.
Formula and inputs used
Selected units × P
- Selling price per unit
- $50.000000
- Variable cost per unit
- $30.000000
- Total fixed costs
- $10,000.000000
Target-profit units
750
Required units round upward; selected revenue uses that quantity.
Formula and inputs used
(F + Target pre-tax profit) / (P − V)
- Selling price per unit
- $50.000000
- Variable cost per unit
- $30.000000
- Total fixed costs
- $10,000.000000
- Target profit
- $5,000.000000
Target-profit revenue
$37,500.00
Required units round upward; selected revenue uses that quantity.
Formula and inputs used
Target units × P
- Selling price per unit
- $50.000000
- Variable cost per unit
- $30.000000
- Total fixed costs
- $10,000.000000
- Target profit
- $5,000.000000
Margin of safety — units
300.000000
Formula and inputs used
Q − Continuous break-even units
- Selling price per unit
- $50.000000
- Variable cost per unit
- $30.000000
- Total fixed costs
- $10,000.000000
- Expected sales quantity
- 800.000000 units
Margin of safety — revenue
$15,000.00
Formula and inputs used
Actual revenue − Continuous break-even revenue
- Selling price per unit
- $50.000000
- Variable cost per unit
- $30.000000
- Total fixed costs
- $10,000.000000
- Expected sales quantity
- 800.000000 units
Margin of safety — percent
37.50%
Formula and inputs used
(Q − Continuous units) / Q × 100
- Selling price per unit
- $50.000000
- Variable cost per unit
- $30.000000
- Total fixed costs
- $10,000.000000
- Expected sales quantity
- 800.000000 units
Profit / loss at expected quantity
$6,000.00
Formula and inputs used
Q × (P − V) − F
- Selling price per unit
- $50.000000
- Variable cost per unit
- $30.000000
- Total fixed costs
- $10,000.000000
- Expected sales quantity
- 800.000000 units
After-tax scenario profit
Not applicable
Formula and inputs used
Profit − max(Profit, 0) × tax rate
No value is substituted for missing data.
How it works
Contribution is price minus variable unit cost. Fixed cost divided by contribution gives continuous units; whole-unit sales round upward. Prices and costs are your business assumptions, not universal official rates.
Formulas and conventions
- Contribution per unit = price − variable cost; contribution ratio = contribution / price × 100.
- Continuous break-even units = fixed costs / contribution. Continuous revenue = continuous units × price.
- Target units = (fixed costs + pre-tax target profit) / contribution, using the selected rounding.
- Profit = quantity × contribution − fixed costs. Margin of safety = quantity − continuous break-even units.
- For an after-tax target, pre-tax target = net target / (1 − assumed flat rate). Tax deductions and loss tax benefits are not modeled.
Worked example
Illustrative example: price50, variable cost30, fixed cost10000, target5000 and sales800 → contribution20, ratio40%, break-even500units/$25000, target750units/$37500, profit6000 and safety margin300units/37.5%. Fixed cost10001 →500.05continuous units or501whole units.
Assumptions and limitations
- Figures are manual entries or illustrative examples; no company data is loaded.
- Use compatible currency, scale, accounting definitions and reporting periods. No foreign exchange conversion.
- Public formulas run in browser memory; financial entries are not transmitted or stored.
- This is not an audit, investment recommendation, or guaranteed outcome.
- Missing values are not inferred and manual figures are not verified by the SEC.
- No automatic filing ingestion, OCR, or account connections.
Sources and freshness
References explain accounting or business context. This tool states its specific formula conventions; no source verifies your entries.
- SBA — Break-even point — U.S. Small Business Administration
Mathematical method reviewed: · Current. Reviewed when the method changes. Your company figures do not have an official verification date in this tool.
Frequently asked questions
What if price equals variable cost?
There is no contribution. Positive fixed costs cannot be covered at a finite volume. With zero fixed cost and zero contribution, there is no unique point.
Can the margin of safety be negative?
Yes. A negative margin means sales are below break-even. If expected quantity is blank, only that group of results lacks data.
Why are there two break-even revenue figures?
One is the exact continuous intersection; the other is revenue at achievable units using the chosen rounding. They are kept distinct.
Can I change the price or assumed tax rate?
Yes. Calculations use the current visible value. Your change does not alter an official reference or persist outside browser memory.