Business
Break-even Units Calculator
Fixed costs, price and variable cost in — how many units until you are even.
How many units to break even?
Break-even units answer how many sales you need before contribution covers fixed costs. It is the simple cousin of the full scenario tool: enter fixed costs, price and variable cost per unit, then read the unit count. Founders often understate fixed costs by omitting owner draw, software and insurance; put those in if the business must fund them. After you know units, sense-check price with reverse margin and promotions with discount profitability. Revenue targets without unit maths live on break-even revenue. Marketplace fees should sit inside variable cost so the contribution per unit matches cash. Estimates for planning only. New product launches should add a buffer above the raw break-even count for sampling, influencer gifts and early returns. If contribution looks healthy only because packaging was forgotten, fix the variable cost field before celebrating the unit target. Seasonal businesses may need separate break-even counts for peak and off-peak months rather than one annualised fiction.
Worked example
Fixed costs £6,000, sell at £50, variable cost £29. Contribution £21 per unit. Break-even units = 6000 ÷ 21 ≈ 286 units. If a campaign forces a £45 selling price, contribution falls to £16 and break-even rises to 375 units — nearly 90 extra sales just to stand still.
Limits and assumptions
Assumes every unit has the same contribution. Bundles, free gifts and tiered shipping break that assumption. Ignores stock risk and cash tied in inventory. Not a demand forecast.
Frequently asked questions
How do I calculate break-even units?
Fixed costs ÷ (price − variable cost per unit). The denominator is contribution per unit.
What if contribution per unit is zero?
Break-even is undefined — you never cover fixed costs. Raise price or cut variable cost.
Do I include my own salary as fixed cost?
If you need the business to pay that salary, yes. Owner draws are a common reason break-even sits higher than founders expect.
How do free samples affect units?
Treat sample giveaways as extra variable cost or reduce effective contribution on the paid units.
Should I round up?
Yes — you cannot sell a fraction of a unit in most shops. Round up and add a small buffer.