Business break-even planner.
Find the whole units needed to cover monthly costs and explore planned sales.
UNDERSTAND THE ESTIMATE
How to use this planner
Enter monthly fixed costs, the price and variable cost of one unit, and planned whole-unit sales. Compare the cost-coverage threshold with the planned operating result.
The calculation
Unit contribution = price − variable unit cost. When contribution is positive, break-even units = fixed costs / unit contribution, rounded upward to a whole unit. Planned operating profit = units × unit contribution − fixed costs.
One product with constant price and unit cost. Taxes, financing, inventory cash flow and demand forecasts are excluded. Estimates are not financial advice.
SBA business planning guidance ↗ILLUSTRATIVE EXAMPLE
Follow the numbers
With fixed costs of 1,000, a price of 50 and variable cost of 30, each unit contributes 20. Selling 50 units covers the fixed costs. Selling 60 gives a modeled operating profit of 200.
What happens when unit contribution is zero or negative?
Selling more does not cover positive fixed costs through unit contribution. The calculator identifies these states instead of presenting a misleading unit target. Taxes, financing and demand forecasts are excluded.