What is the contribution?

Price minus variable cost. That’s what each sale contributes toward the fixed costs.

Why does it round up?

You can’t make a fraction of a sale to cover the last dollars, so the unit count is rounded up.

What if the price is below the variable cost?

There is no break-even. Every sale increases the loss, and the page says so.

Break-even Calculator

Find how many sales cover your fixed costs from price and variable cost.

Each sale contributes price minus variable cost. Divide fixed costs by that contribution, then round up — you can’t sell a fraction of a unit.

Fixed costs

Rent, software, salaries — costs that don’t move with each sale.Selling price

What one unit sells for, in AUD.Variable cost

What one extra sale costs you.

Sales to break even

107

Each sale contributes $75.00. You cover $8,000.00 of fixed costs at 107 sales, which is $12,840.00 of revenue.

Contribution each: $75.00
Break-even revenue: $12,840.00

The numbers stay in this browser. The share link only includes the three amounts you typed.

Worked example

Fixed costs of $8,000, a price of $120, and a variable cost of $45 leave $75 per sale. You cover the fixed costs at 107 sales, because 8,000 ÷ 75 rounds up to 107 — that last fraction of a sale still counts as a whole one.

FAQ

What is the contribution?: Price minus variable cost. That’s what each sale contributes toward the fixed costs.
Why does it round up?: You can’t make a fraction of a sale to cover the last dollars, so the unit count is rounded up.
What if the price is below the variable cost?: There is no break-even. Every sale increases the loss, and the page says so.