How many units to cover your fixed costs?

Break-even point

Calculate your break-even point in units and revenue from fixed costs, price, and variable cost per unit.

Formula

break-even units = fixed costs / (price − variable cost per unit)

Assumptions

• Assumes price and variable cost per unit stay constant regardless of volume.

Frequently asked questions

What counts as a fixed cost vs. a variable cost?
Fixed costs don't change with sales volume — rent, salaries, software subscriptions. Variable costs scale per unit sold — materials, packaging, per-item shipping.

What if I can't reach break-even?
If your price is at or below your variable cost per unit, each sale loses money regardless of volume — no number of units will cover fixed costs until the price or cost structure changes.