Break-Even Units Calculator (with Target Profit)
Find how many units you must sell to cover all fixed and variable costs, and optionally to hit a target profit, based on your price and per-unit variable cost.
Last updated: September 2026
Units to Sell
3,500 units
This calculator gives an estimate for general information only. It is not financial, tax or investment advice. Check the figures with a qualified professional before making decisions, and follow the rules that apply where you live.
Formula below · 1 source (openstax.org) · Updated Sep 2026
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About this calculator
Each unit sold contributes its selling price minus its variable cost toward covering fixed costs; this amount is the contribution margin per unit: pricePerUnit - variableCostPerUnit. To break even you must sell enough units for the total contribution margin to equal your fixed costs. Adding a target profit raises the bar: required units = (fixedCosts + targetProfit) / (pricePerUnit - variableCostPerUnit). Setting targetProfit to 0 gives the pure break-even quantity. The denominator is the contribution margin, so a larger gap between price and variable cost means fewer units are needed; if the price barely exceeds the variable cost, the required volume balloons.
How to use
Example (the defaults): $50,000 in fixed costs, a $35 selling price, and $15 of variable cost per unit, with a $20,000 profit goal. The contribution margin is $35 - $15 = $20 per unit. To cover fixed costs plus the target profit you need ($50,000 + $20,000) / $20 = 3,500 units. To simply break even (target profit of $0) you would need $50,000 / $20 = 2,500 units. Enter your numbers to see your own break-even volume.
Frequently asked questions
How many units do I need to sell to break even?
Divide your total fixed costs by the contribution margin per unit, which is the selling price minus the variable cost of each unit. For example, $50,000 of fixed costs and a $20 contribution margin means 2,500 units to break even. This calculator also lets you add a target profit so you can see the volume needed not just to survive but to hit a specific earnings goal.
What is contribution margin and why does it matter for break-even?
Contribution margin is the portion of each sale left over after paying that unit's variable costs, and it is what actually goes toward covering fixed costs and profit. It is the denominator of the break-even formula, so it drives everything: raising your price or cutting variable cost per unit increases the contribution margin and sharply reduces the number of units you need to sell. A thin contribution margin makes break-even very sensitive to volume.
How do I lower my break-even point?
There are three levers: reduce fixed costs, raise the selling price, or cut the variable cost per unit. Break-even units equal fixed costs divided by the contribution margin, so cutting fixed costs shrinks the numerator, while a higher price or lower variable cost widens the margin in the denominator. When the margin is thin, small changes in price or unit cost move the break-even point a lot. Try each change in the calculator to see which lever moves it most.
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