Break-even Calculator — BEP Units

Calculator

A break-even calculator divides fixed cost by unit contribution margin to estimate required sales units.

What is it

The break-even point is where revenue equals cost. Unit contribution margin is unit price minus unit variable cost.

break-even units = fixed cost / (unit price - variable cost)

How to use

  1. 1Enter fixed cost.
  2. 2Enter unit price and variable cost.
  3. 3Check break-even units.

Reference

Break-even Calculator — BEP Units Reference
Fixed costPriceVariable costUnits
1000000500003000050

Sources & standards

FAQ

How many units break even with fixed cost 1,000,000, price 50,000, and variable cost 30,000?

The contribution margin is 20,000, so the break-even point is 50 units.

Does this equal actual business profit?

No. Taxes, returns, changing ad costs, inventory costs, and other expenses can change real profit.

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