Break-even Units = Fixed Costs ÷ (Selling Price − Variable Cost per Unit).
Fixed costs
Break-even revenue = break-even units × selling price.
Reach for this calculator when you need to present a business metric to stakeholders. Accurate, consistently-defined figures command more credibility than estimates, particularly in financial discussions.
The most consequential business calculation error is excluding indirect costs from the calculation. Labour, overhead, and opportunity cost are frequently omitted when evaluating profitability, producing overstated margin figures.
A marketing manager calculates campaign ROI: £15,000 spend, £72,000 in attributed revenue, 35% gross margin. Net profit from the campaign: £10,200. ROI: 68%. The figure justifies the budget allocation and provides the benchmark for the next campaign.
Break-even Units = Fixed Costs ÷ (Price − Variable Cost). Each unit sold above this is pure profit.
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