What does a break-even point of 5,000 units mean?
On the defaults — $50,000 of fixed costs, a $25.00 price and a $15.00 variable cost — the contribution margin is $10.00 per unit and the break-even point is 5,000 units, which is $125,000.00 of sales. The contribution margin is the price minus the variable cost: $25.00 − $15.00 = $10.00 per unit. The break-even units are the fixed costs divided by the contribution margin: $50,000 ÷ $10.00 = 5,000 units. The break-even revenue is the units times the price: 5,000 × $25.00 = $125,000.00. At 5,000 units sold the business has covered every fixed cost and made exactly zero profit — the 5,001st unit is the first one that is pure profit, and every unit before it is still paying off the rent and salaries. Whether that is comfortable or thin depends on how many units the business can actually sell — a point of 5,000 units against demand for 6,000 is a business that clears the line, and the same point against demand for 4,000 is a business that never gets there.
Three things about the model are worth stating plainly.
First, the division is $50,000 ÷ $10.00 = 5,000 units, and the revenue is 5,000 × $25.00 = $125,000.00 — the units and the revenue are two outputs, never the same number. Second, the meaning is 5,000 units to sell before profit starts — the sales volume at which profit is zero, not the profit itself, and the revenue is the sales at that volume. And third, the units are displayed to two decimals, half-up, and a figure that displays as 5,999.90 can sit a hair below the target: $59,999 of fixed costs gives 5999.900000 units, which displays as 5,999.90 — and $50,001 gives 5000.100000 units, which displays as 5,000.10 — all listed in Accuracy & limitations.
The worked example, line by line
Setup: fixed costs $50,000, price $25.00, variable cost $15.00.
Line 1 — the contribution margin. $25.00 − $15.00 = $10.00 per unit.
Line 2 — the break-even units. $50,000 ÷ $10.00 = 5,000.00 units (unrounded 5000.000000 units).
Line 3 — the break-even revenue. 5,000 × $25.00 = $125,000.00.
Line 4 — the check. At $60,000 of fixed costs the point is 6,000 units; and at $59,999 it is 5,999.90 units — below 6,000.
Every branch, checked
Fixed $60,000: fixed costs $60,000.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 6,000.00 units; break-even revenue $150,000.00 — More fixed costs to cover, so more units to sell before profit starts.
Fixed $40,000: fixed costs $40,000.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 4,000.00 units; break-even revenue $100,000.00 — Fewer fixed costs to cover, so fewer units to sell before profit starts.
Price $30.00: fixed costs $50,000.00; price per unit $30.00; variable cost per unit $15.00; contribution margin $15.00 per unit; break-even 3,333.33 units; break-even revenue $100,000.00 — A higher price means more contribution from every sale, so fewer units to break even.
Price $20.00: fixed costs $50,000.00; price per unit $20.00; variable cost per unit $15.00; contribution margin $5.00 per unit; break-even 10,000.00 units; break-even revenue $200,000.00 — A lower price means less contribution from every sale, so more units to break even.
Variable $10.00: fixed costs $50,000.00; price per unit $25.00; variable cost per unit $10.00; contribution margin $15.00 per unit; break-even 3,333.33 units; break-even revenue $83,333.33 — A lower variable cost means more contribution from every sale, so fewer units to break even.
Variable $20.00: fixed costs $50,000.00; price per unit $25.00; variable cost per unit $20.00; contribution margin $5.00 per unit; break-even 10,000.00 units; break-even revenue $250,000.00 — A higher variable cost means less contribution from every sale, so more units to break even.
Fixed $75,000: fixed costs $75,000.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 7,500.00 units; break-even revenue $187,500.00 — More fixed costs to cover, so more units to sell before profit starts.
Fixed $25,000: fixed costs $25,000.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 2,500.00 units; break-even revenue $62,500.00 — Fewer fixed costs to cover, so fewer units to sell before profit starts.
The branch units in full: 3,333.33 units at a $30.00 price (unrounded 3333.333333) and 3,333.33 units at a $10.00 variable cost (unrounded 3333.333333) — both display as 3,333.33.
The reverses, worked backwards
Smallest fixed costs for the units to REACH 6,000: At the displayed $60,000 the figures are fixed costs $60,000.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 6,000.00 units (unrounded 6000.000000 units); break-even revenue $150,000.00. At the lower neighbor the figures are fixed costs $59,999.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 5,999.90 units (unrounded 5999.900000 units); break-even revenue $149,997.50 — below the target — so $60,000 is the smallest fixed costs for the units to REACH 6,000.
Largest fixed costs for the units to STAY at or below 5,000: At the displayed $50,000 the figures are fixed costs $50,000.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 5,000.00 units (unrounded 5000.000000 units); break-even revenue $125,000.00. At the upper neighbor the figures are fixed costs $50,001.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 5,000.10 units (unrounded 5000.100000 units); break-even revenue $125,002.50 — above the target — so $50,000 is the largest fixed costs for the units to STAY at or below 5,000.
Smallest price for the units to STAY at or below 4,000: At the displayed $27.50 the figures are fixed costs $50,000.00; price per unit $27.50; variable cost per unit $15.00; contribution margin $12.50 per unit; break-even 4,000.00 units (unrounded 4000.000000 units); break-even revenue $110,000.00. At the lower neighbor the figures are fixed costs $50,000.00; price per unit $27.49; variable cost per unit $15.00; contribution margin $12.49 per unit; break-even 4,003.20 units (unrounded 4003.202562 units); break-even revenue $110,048.04 (unrounded 110048.038431) — above the target, though it displays as 4,003.20 — so $27.50 is the smallest price for the units to STAY at or below 4,000.
Largest variable cost for the units to STAY at or below 6,000: At the displayed $16 the figures are fixed costs $50,000.00; price per unit $25.00; variable cost per unit $16.00; contribution margin $9.00 per unit; break-even 5,555.56 units (unrounded 5555.555556 units); break-even revenue $138,888.89 (unrounded 138888.888889). At the upper neighbor the figures are fixed costs $50,000.00; price per unit $25.00; variable cost per unit $17.00; contribution margin $8.00 per unit; break-even 6,250.00 units (unrounded 6250.000000 units); break-even revenue $156,250.00 — above the target — so $16 is the largest variable cost for the units to STAY at or below 6,000.
Largest price for the revenue to STAY at or above $150,000.00: At the displayed $22.50 the figures are fixed costs $50,000.00; price per unit $22.50; variable cost per unit $15.00; contribution margin $7.50 per unit; break-even 6,666.67 units (unrounded 6666.666667 units); break-even revenue $150,000.00. At the upper neighbor the figures are fixed costs $50,000.00; price per unit $22.51; variable cost per unit $15.00; contribution margin $7.51 per unit; break-even 6,657.79 units (unrounded 6657.789614 units); break-even revenue $149,866.84 (unrounded 149866.844208) — below the target — so $22.50 is the largest price for the revenue to STAY at or above $150,000.00.
Smallest fixed costs for the revenue to REACH $200,000.00: At the displayed $80,000 the figures are fixed costs $80,000.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 8,000.00 units (unrounded 8000.000000 units); break-even revenue $200,000.00. At the lower neighbor the figures are fixed costs $79,999.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 7,999.90 units (unrounded 7999.900000 units); break-even revenue $199,997.50 — below the target — so $80,000 is the smallest fixed costs for the revenue to REACH $200,000.00.
A warning about the neighbours: every neighbour above sits one dollar or one cent from the star, and every neighbour figure is a hair below or above the target even though it displays close to the target — a one-dollar move in the fixed costs moves the units by about 0.1, so the displayed two-decimal figure cannot tell the star from its neighbour. The page prints the unrounded six-decimal units in full so the rounding does not mislead you: R1 6000.000000 / 5999.900000; R2 5000.000000 / 5000.100000; R3 4000.000000 / 4003.202562; R4 5555.555556 / 6250.000000; R5 6666.666667 units with $150,000.00 revenue / 6657.789614 units with $149,866.84 revenue; R6 $200,000.00 / $199,997.50.
What the defaults assume
The defaults are $50,000 of fixed costs, a $25.00 price and a $15.00 variable cost — fixed costs $50,000.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 5,000.00 units; break-even revenue $125,000.00. With Fixed $60,000, fixed costs $60,000.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 6,000.00 units; break-even revenue $150,000.00. With Fixed $40,000, fixed costs $40,000.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 4,000.00 units; break-even revenue $100,000.00. With Price $30.00, fixed costs $50,000.00; price per unit $30.00; variable cost per unit $15.00; contribution margin $15.00 per unit; break-even 3,333.33 units; break-even revenue $100,000.00. With Price $20.00, fixed costs $50,000.00; price per unit $20.00; variable cost per unit $15.00; contribution margin $5.00 per unit; break-even 10,000.00 units; break-even revenue $200,000.00. With Variable $10.00, fixed costs $50,000.00; price per unit $25.00; variable cost per unit $10.00; contribution margin $15.00 per unit; break-even 3,333.33 units; break-even revenue $83,333.33. With Variable $20.00, fixed costs $50,000.00; price per unit $25.00; variable cost per unit $20.00; contribution margin $5.00 per unit; break-even 10,000.00 units; break-even revenue $250,000.00. With Fixed $75,000, fixed costs $75,000.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 7,500.00 units; break-even revenue $187,500.00. With Fixed $25,000, fixed costs $25,000.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 2,500.00 units; break-even revenue $62,500.00. With All zero, fixed costs $0.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 0.00 units; break-even revenue $0.00 — breaks even immediately, with nothing to cover. With Price = variable cost, fixed costs $50,000.00; price per unit $15.00; variable cost per unit $15.00; contribution margin $0.00 per unit; break-even point undefined — every sale adds nothing, so no sales volume ever covers the fixed costs: the point is undefined. With Fractional inputs (units unrounded 4634.146341), fixed costs $47,500.00; price per unit $24.50; variable cost per unit $14.25; contribution margin $10.25 per unit; break-even 4,634.15 units (unrounded 4634.146341 units); break-even revenue $113,536.59 (unrounded 113536.585366) — the unrounded units round to the displayed figure. With Fixed $1,000,000, price $100.00, variable $60.00, fixed costs $1,000,000.00; price per unit $100.00; variable cost per unit $60.00; contribution margin $40.00 per unit; break-even 25,000.00 units; break-even revenue $2,500,000.00 — the same shape at a much bigger size. With Price below variable cost, fixed costs $50,000.00; price per unit $10.00; variable cost per unit $15.00; contribution margin −$5.00 per unit; break-even −10,000.00 units; break-even revenue −$100,000.00 — each sale loses money, so the break-even point is negative: a real figure, shown with the U+2212 minus sign. With Variable cost $0, fixed costs $50,000.00; price per unit $25.00; variable cost per unit $0.00; contribution margin $25.00 per unit; break-even 2,000.00 units; break-even revenue $50,000.00 — every dollar of price is contribution. With Small numbers, fixed costs $500.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 50.00 units; break-even revenue $1,250.00 — a small job with small fixed costs. With Fractional inputs (revenue unrounded 88843.556), fixed costs $33,333.00; price per unit $19.99; variable cost per unit $12.49; contribution margin $7.50 per unit; break-even 4,444.40 units; break-even revenue $88,843.56 (unrounded 88843.556) — the unrounded revenue rounds to the displayed figure. With Negative fixed costs, fixed costs −$10,000.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even −1,000.00 units; break-even revenue −$25,000.00 — a grant or credit against the fixed costs: a real figure, shown with the U+2212 minus sign. With Razor-thin margin, fixed costs $50,000.00; price per unit $25.00; variable cost per unit $24.99; contribution margin $0.01 per unit; break-even 5,000,000.00 units; break-even revenue $125,000,000.00 — a margin of a single cent needs millions of units. With Fixed $100,000, price $50.00, variable $30.00, fixed costs $100,000.00; price per unit $50.00; variable cost per unit $30.00; contribution margin $20.00 per unit; break-even 5,000.00 units; break-even revenue $250,000.00 — a bigger price and a bigger margin, the same shape.
A note on the rounding: the units and the revenue are displayed to two decimals, half-up. With the fractional inputs the unrounded units are 4634.146341 — they display as 4,634.15 — and the unrounded revenue is 113536.585366 — it displays as $113,536.59. With the other fractional inputs the unrounded revenue is 88843.556 — it displays as $88,843.56, and the units are exactly 4,444.40. The page prints the unrounded values so the rounding does not mislead you.
Output · formula · meaning
| Output | Formula | What it means |
|---|
| Fixed costs | input | $50,000.00. |
| Price per unit | input | $25.00. |
| Variable cost per unit | input | $15.00. |
| Contribution margin | price per unit − variable cost per unit | $10.00 per unit. |
| Break-even units | fixed costs ÷ contribution margin | 5,000.00 units. |
| Break-even revenue | break-even units × price per unit | $125,000.00. |
| Verdict | how many units to sell before profit starts | Break even at 5,000.00 units — $125,000.00 of sales. |
| Reverse: Smallest fixed costs for the units to REACH 6,000 | step | $60,000: fixed costs $60,000.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 6,000.00 units (unrounded 6000.000000 units); break-even revenue $150,000.00. |
| Reverse: Largest fixed costs for the units to STAY at or below 5,000 | step | $50,000: fixed costs $50,000.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 5,000.00 units (unrounded 5000.000000 units); break-even revenue $125,000.00. |
| Reverse: Smallest price for the units to STAY at or below 4,000 | step | $27.50: fixed costs $50,000.00; price per unit $27.50; variable cost per unit $15.00; contribution margin $12.50 per unit; break-even 4,000.00 units (unrounded 4000.000000 units); break-even revenue $110,000.00. |
| Reverse: Largest variable cost for the units to STAY at or below 6,000 | step | $16: fixed costs $50,000.00; price per unit $25.00; variable cost per unit $16.00; contribution margin $9.00 per unit; break-even 5,555.56 units (unrounded 5555.555556 units); break-even revenue $138,888.89 (unrounded 138888.888889). |
| Reverse: Largest price for the revenue to STAY at or above $150,000.00 | step | $22.50: fixed costs $50,000.00; price per unit $22.50; variable cost per unit $15.00; contribution margin $7.50 per unit; break-even 6,666.67 units (unrounded 6666.666667 units); break-even revenue $150,000.00. |
| Reverse: Smallest fixed costs for the revenue to REACH $200,000.00 | step | $80,000: fixed costs $80,000.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 8,000.00 units (unrounded 8000.000000 units); break-even revenue $200,000.00. |
| Fixed $60,000 | same model | fixed costs $60,000.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 6,000.00 units; break-even revenue $150,000.00. |
| Fixed $40,000 | same model | fixed costs $40,000.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 4,000.00 units; break-even revenue $100,000.00. |
| Price $30.00 | same model | fixed costs $50,000.00; price per unit $30.00; variable cost per unit $15.00; contribution margin $15.00 per unit; break-even 3,333.33 units; break-even revenue $100,000.00. |
| Price $20.00 | same model | fixed costs $50,000.00; price per unit $20.00; variable cost per unit $15.00; contribution margin $5.00 per unit; break-even 10,000.00 units; break-even revenue $200,000.00. |
| Variable $10.00 | same model | fixed costs $50,000.00; price per unit $25.00; variable cost per unit $10.00; contribution margin $15.00 per unit; break-even 3,333.33 units; break-even revenue $83,333.33. |
| Variable $20.00 | same model | fixed costs $50,000.00; price per unit $25.00; variable cost per unit $20.00; contribution margin $5.00 per unit; break-even 10,000.00 units; break-even revenue $250,000.00. |
| Fixed $75,000 | same model | fixed costs $75,000.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 7,500.00 units; break-even revenue $187,500.00. |
| Fixed $25,000 | same model | fixed costs $25,000.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 2,500.00 units; break-even revenue $62,500.00. |
| All zero | same model | fixed costs $0.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 0.00 units; break-even revenue $0.00. |
| Price = variable cost | same model | fixed costs $50,000.00; price per unit $15.00; variable cost per unit $15.00; contribution margin $0.00 per unit; break-even point undefined. |
| Fractional inputs (units unrounded 4634.146341) | same model | fixed costs $47,500.00; price per unit $24.50; variable cost per unit $14.25; contribution margin $10.25 per unit; break-even 4,634.15 units (unrounded 4634.146341 units); break-even revenue $113,536.59 (unrounded 113536.585366). |
| Fixed $1,000,000, price $100.00, variable $60.00 | same model | fixed costs $1,000,000.00; price per unit $100.00; variable cost per unit $60.00; contribution margin $40.00 per unit; break-even 25,000.00 units; break-even revenue $2,500,000.00. |
| Price below variable cost | same model | fixed costs $50,000.00; price per unit $10.00; variable cost per unit $15.00; contribution margin −$5.00 per unit; break-even −10,000.00 units; break-even revenue −$100,000.00. |
| Variable cost $0 | same model | fixed costs $50,000.00; price per unit $25.00; variable cost per unit $0.00; contribution margin $25.00 per unit; break-even 2,000.00 units; break-even revenue $50,000.00. |
| Small numbers | same model | fixed costs $500.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 50.00 units; break-even revenue $1,250.00. |
| Fractional inputs (revenue unrounded 88843.556) | same model | fixed costs $33,333.00; price per unit $19.99; variable cost per unit $12.49; contribution margin $7.50 per unit; break-even 4,444.40 units; break-even revenue $88,843.56 (unrounded 88843.556). |
| Negative fixed costs | same model | fixed costs −$10,000.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even −1,000.00 units; break-even revenue −$25,000.00. |
| Razor-thin margin | same model | fixed costs $50,000.00; price per unit $25.00; variable cost per unit $24.99; contribution margin $0.01 per unit; break-even 5,000,000.00 units; break-even revenue $125,000,000.00. |
| Fixed $100,000, price $50.00, variable $30.00 | same model | fixed costs $100,000.00; price per unit $50.00; variable cost per unit $30.00; contribution margin $20.00 per unit; break-even 5,000.00 units; break-even revenue $250,000.00. |
Who uses this
- The small-business owner pricing a product: they learn $50,000 of fixed costs, a $25.00 price and a $15.00 variable cost break even at 5,000 units — and they check the $60,000 reverse to see how much more fixed cost lifts the point to 6,000 units.
- The startup founder setting a sales target: they learn the break-even revenue is $125,000.00 — and they check the $27.50 reverse to see the price that holds the point at or below 4,000 units.
- The shop owner weighing a rent rise: they learn the point rises with the fixed costs — and they check the $80,000 reverse to see the fixed costs that lift the revenue target to $200,000.00.
- The student learning unit economics: they learn the contribution margin is the price minus the variable cost — and they check the $16 reverse to see the variable cost that holds the point at or below 6,000 units.
Accuracy & limitations
The math is first-principles: the contribution margin is the price per unit minus the variable cost per unit, the break-even units are the fixed costs divided by the contribution margin, and the break-even revenue is the units times the price — all in dollars and units, the units and revenue displayed to two decimals half-up. There IS division in this calculator — when the price equals the variable cost the contribution margin is $0.00 per unit and the break-even point is UNDEFINED — every sale adds nothing, so no sales volume ever covers the fixed costs — the calculator shows “break-even point undefined” with a note, never hides it. When the price is below the variable cost the units go NEGATIVE: a $10.00 price against a $15.00 variable cost gives a margin of −$5.00 per unit, −10,000 units and −$100,000.00 of revenue — a real figure, shown with the U+2212 minus sign, because each sale loses money. When the fixed costs are negative the units go negative too: −$10,000 of fixed costs gives −1,000 units and −$25,000.00 of revenue — a real figure, shown with the U+2212 minus sign, a grant or credit against the fixed costs. At $0 of fixed costs the point is 0 units — a real figure, not undefined. With the fractional inputs the unrounded units are 4634.146341 — they display as 4,634.15 — and the unrounded revenue is 113536.585366 — it displays as $113,536.59. With the other fractional inputs the unrounded revenue is 88843.556 — it displays as $88,843.56. The largest whole-dollar variable cost that holds the point at or below 6,000 units is $16 — the page shows the displayed $16 input only, and the forward at that input is 5,555.555556 units, which displays as 5,555.56, with revenue of $138,888.89. What the model cannot do is say whether 5,000 units is achievable: it says nothing about demand — whether anyone will buy 5,000 units at $25.00 — and it says nothing about capacity — whether the business can make 5,000 units at all. Use it to see the sales volume that covers your fixed costs — then check the contribution-margin, gross-profit-margin and customer-acquisition-cost calculators before you decide the price is right.
Cite this calculatorBright Side Kit. “Break-Even Point Calculator: Units and Sales Needed” brightoolbox.com, 2026. Method: contribution margin = price per unit − variable cost per unit; break-even units = fixed costs ÷ contribution margin; break-even revenue = break-even units × price per unit. Reverses: smallest fixed costs for the units to REACH 6,000 is $60,000 (at $60,000 the figures are fixed costs $60,000.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 6,000.00 units (unrounded 6000.000000 units); break-even revenue $150,000.00; at $59,999 the figures are fixed costs $59,999.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 5,999.90 units (unrounded 5999.900000 units); break-even revenue $149,997.50 — below the target); largest fixed costs for the units to STAY at or below 5,000 is $50,000 (at $50,000 the figures are fixed costs $50,000.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 5,000.00 units (unrounded 5000.000000 units); break-even revenue $125,000.00; at $50,001 the figures are fixed costs $50,001.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 5,000.10 units (unrounded 5000.100000 units); break-even revenue $125,002.50 — above the target); smallest price for the units to STAY at or below 4,000 is $27.50 (at $27.50 the figures are fixed costs $50,000.00; price per unit $27.50; variable cost per unit $15.00; contribution margin $12.50 per unit; break-even 4,000.00 units (unrounded 4000.000000 units); break-even revenue $110,000.00; at $27.49 the figures are fixed costs $50,000.00; price per unit $27.49; variable cost per unit $15.00; contribution margin $12.49 per unit; break-even 4,003.20 units (unrounded 4003.202562 units); break-even revenue $110,048.04 (unrounded 110048.038431) — above the target, though it displays as 4,003.20); largest variable cost for the units to STAY at or below 6,000 is $16 (at $16 the figures are fixed costs $50,000.00; price per unit $25.00; variable cost per unit $16.00; contribution margin $9.00 per unit; break-even 5,555.56 units (unrounded 5555.555556 units); break-even revenue $138,888.89 (unrounded 138888.888889); at $17 the figures are fixed costs $50,000.00; price per unit $25.00; variable cost per unit $17.00; contribution margin $8.00 per unit; break-even 6,250.00 units (unrounded 6250.000000 units); break-even revenue $156,250.00 — above the target); largest price for the revenue to STAY at or above $150,000.00 is $22.50 (at $22.50 the figures are fixed costs $50,000.00; price per unit $22.50; variable cost per unit $15.00; contribution margin $7.50 per unit; break-even 6,666.67 units (unrounded 6666.666667 units); break-even revenue $150,000.00; at $22.51 the figures are fixed costs $50,000.00; price per unit $22.51; variable cost per unit $15.00; contribution margin $7.51 per unit; break-even 6,657.79 units (unrounded 6657.789614 units); break-even revenue $149,866.84 (unrounded 149866.844208) — below the target); smallest fixed costs for the revenue to REACH $200,000.00 is $80,000 (at $80,000 the figures are fixed costs $80,000.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 8,000.00 units (unrounded 8000.000000 units); break-even revenue $200,000.00; at $79,999 the figures are fixed costs $79,999.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 7,999.90 units (unrounded 7999.900000 units); break-even revenue $199,997.50 — below the target). Defaults: fixed costs $50,000.00; price per unit $25.00; variable cost per unit $15.00; contribution margin $10.00 per unit; break-even 5,000.00 units; break-even revenue $125,000.00 Bright Side Kit. "Break-Even Point Calculator: Units and Sales Needed" https://brightoolbox.com/break-even-point-calculator/ Accessed October 27, 2026.
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Frequently asked questions
What is the break-even point?
The sales volume at which profit is zero. The break-even point is the fixed costs divided by the contribution margin per unit. On $50,000 of fixed costs, a $25.00 price and a $15.00 variable cost, the point is 5,000 units — $125,000.00 of sales.
How do I calculate the break-even point?
Divide the fixed costs by the contribution margin per unit. The contribution margin is the price minus the variable cost: $25.00 − $15.00 = $10.00 per unit. Then $50,000 ÷ $10.00 = 5,000 units, and 5,000 × $25.00 = $125,000.00 of sales.
What does a break-even point of 5,000 units mean?
5,000 units sold covers every fixed cost and makes exactly zero profit. At $50,000 of fixed costs, a $25.00 price and a $15.00 variable cost, the 5,001st unit is the first one that is pure profit.
How many units do I need to sell if my fixed costs rise to $60,000?
6,000 units. The smallest fixed costs for the units to reach 6,000 is $60,000. At $59,999 the point is 5,999.90 units — below the line.
What happens if my price equals my variable cost?
The break-even point is undefined. If the price is $15.00 and the variable cost is $15.00, the contribution margin is $0.00 per unit — every sale adds nothing, so no sales volume ever covers the fixed costs.
What happens if my price is below my variable cost?
The break-even point goes negative. At a $10.00 price and a $15.00 variable cost the margin is −$5.00 per unit, the point is −10,000 units and the revenue is −$100,000.00 — each sale loses money, so there is no volume that breaks even.
What is the contribution margin?
The price minus the variable cost, per unit. At a $25.00 price and a $15.00 variable cost the contribution margin is $10.00 per unit — the amount each sale contributes toward the fixed costs. Work it out in the contribution margin calculator.
What is the difference between this and the mortgage break-even calculators?
One counts units, the others count months. This calculator works out the units and sales revenue at which a business breaks even. The mortgage-points break-even calculator works out whether paying discount points pays off, and the refinance break-even calculator works out the months to recoup closing costs. Work them out in the mortgage points break-even calculator and the refinance break-even calculator.