Toolivaro

Free Break-Even Calculator

Find how many units you must sell — and at what revenue — to cover your fixed costs, from price and variable cost.

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Selling price per unit.

Costs that change with each unit sold.

Monthly or period costs that do not change with volume.

How is the result calculated?

Subscription launch: price 25, variable cost 15, fixed 10,000

A software subscription sells for $25/month and costs $15/month to deliver (hosting and support). Each subscription contributes $10 toward fixed costs of $10,000/month (office, salaries, tools). Break-even is 10,000 / 10 = 1,000 subscriptions, which is $25,000 of monthly recurring revenue. Selling 900 subscriptions still loses $1,000/month even though the product is profitable per unit.

Input Value
price 25.00
variableCost 15.00
fixedCosts 10000.00
Result Contribution $10.00/unit · break-even 1,000 units · $25,000.00 revenue

What is the formula and its assumptions?

Contribution margin per unit

contribution = price − variable cost per unit

Symbol Meaning
price selling price per unit
variable cost per unit cost that changes with each unit sold

Break-even units

break-even units = fixed costs / contribution per unit

Symbol Meaning
fixed costs costs that do not change with volume (rent, salaries, software)
contribution per unit price minus variable cost per unit

Break-even revenue

break-even revenue = break-even units × price

Symbol Meaning
price selling price per unit

Equivalently, fixed costs divided by the contribution ratio. The result is revenue, not units — quoting the wrong one is a classic mistake.

What are the most common mistakes?

  • Forgetting non-obvious variable costs (payment fees, per-unit shipping) and ending up below true break-even.
  • Quoting break-even revenue as units or vice versa — they differ by the price.
  • Assuming fixed costs stay fixed forever; step costs (a second hire, more office space) change the break-even at scale.

What are the assumptions and limitations?

  • Assumes constant price, cost, and volume relationship — no bulk discounts, price elasticity, or taxes.
  • Break-even here means zero operating profit; it is not a cash-flow projection.
  • Results are planning estimates, not professional financial advice.

Where do the numbers come from?

Last reviewed August 4, 2026 · Version 1.0.0 · Toolivaro does not guarantee external content.

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Frequently asked questions

What counts as a variable cost?

Variable costs change with volume: product materials, per-unit shipping, payment-processing fees, and per-customer hosting. Rent, salaries, and software subscriptions are fixed costs. Classifying a cost wrongly moves the break-even point materially.

What if my break-even is not a whole number?

The calculator keeps the exact result (for example 834.7 units). In practice you must sell the next whole unit — 835 — to pass the break-even point. The displayed value is rounded for reading, not for decision-making.

What does it mean if price is below variable cost?

That every sale loses money, so there is no break-even quantity — selling more only increases the loss. The calculator refuses to compute and explains this instead of returning a misleading number.

Found a mistake or have a correction? Report it — we review every correction.