Break-even point
See how many units a small business needs to sell before it covers fixed costs. The sample uses a $32 price, a $14 variable cost, and $1,200 in fixed costs.
| @1 | fixedCosts = 1200$ | |
| @2 | price = 32$ | |
| @3 | variableCost = 14$ | |
| @4 | contribution = price - variableCost | |
| @5 | breakEvenUnitsExact = fixedCosts / contribution | |
| @6 | breakEvenUnits = ceil(breakEvenUnitsExact) | |
| @7 | salesAtBreakEven = breakEvenUnits * price |
How it works
- Enter the fixed costs for the period and the price per unit.
- Subtract the variable cost to get the contribution per unit.
- Round the exact result up with
ceilbecause you cannot sell a fraction of a unit.
Use a separate calculation for a different product or time period so each set of assumptions stays easy to audit.