Estimate the number of units required to cover fixed and variable costs.
Enter your fixed costs (rent, salaries, subscriptions — anything that stays the same regardless of sales volume), the price you sell each unit for, and the variable cost of producing or delivering one unit. The calculator subtracts variable cost from price to get your contribution margin per unit, then divides fixed costs by that margin to show how many units you need to sell before you start making a profit.
If the sale price is at or below the variable cost, break-even is impossible at that price — the calculator will tell you to raise the price or cut variable costs instead of showing a unit count. Once price is above variable cost, a lower fixed-cost base or a wider margin per unit both bring the break-even point down.
These two terms sound interchangeable but measure different things. Contribution margin is price minus variable cost per unit — in the default example on this page, €50 minus €20 is a €30 contribution margin, with no mention of fixed costs yet. Profit margin, by contrast, only appears once fixed costs are spread across total units sold and subtracted from revenue. A product can have a healthy contribution margin and still run at a loss overall if sales volume never reaches the break-even point where fixed costs are fully covered.
With the default numbers on this page — €1,000 fixed costs, €30 contribution margin — break-even lands at roughly 34 units. Every unit sold after that point no longer needs to help cover fixed costs, since those are already paid off, so the 35th unit and every one after it adds its full €30 contribution margin straight to profit. That's why growth past break-even tends to compound quickly: the same fixed-cost base now supports a rapidly rising profit line.
Fixed costs don't change with how much you sell — rent, insurance, a flat subscription fee. Variable costs scale with each unit — materials, packaging, a per-item shipping fee.
That happens when your sale price doesn't cover the variable cost per unit. In that case every sale loses money before fixed costs are even considered, so no volume of sales reaches break-even.
No, it's a straightforward fixed cost vs. contribution margin calculation. Add one-time costs into your fixed-cost figure yourself if you want them reflected in the break-even point.
Every unit sold after break-even contributes pure profit equal to your contribution margin (price minus variable cost), since fixed costs are already covered. In the default example on this page (€30 contribution margin), the 35th unit adds €30 of profit, and so does every unit after it.