Tool 06 of 10

Break-even & Contribution Margin Calculator

ReviewedLast reviewed Oct 2026 · Educational formulas

Find how many units you must sell to cover fixed costs or hit a profit target.

Inputs

Rent, salaries, software and other costs that don't vary with volume.

Results

Enter your values and press Calculate. Results update live after the first calculation.

How it works

Contribution margin per unit is price minus variable cost: what each sale contributes toward fixed costs and profit. The contribution margin ratio is that margin divided by price.

Break-even units = Fixed costs ÷ Contribution margin. Break-even revenue is break-even units × price. To hit a target profit, add it to fixed costs before dividing. Units are rounded up because you can't sell a fraction of a unit.

Estimates for educational purposes only. Results are approximations and not financial advice. See the disclaimer.