What problem does this calculator solve?
Businesses need to know how many products or services they must sell to cover costs. Our calculator relates contribution per sale to the fixed costs of the selected period.
A positive contribution per product does not yet cover fixed costs. Break-even analysis connects unit economics to a defined business period.
Six practical questions, answered clearly
Find the calculation behind your question. These answers explain how to use the inputs and results when making a decision.
How many sales do I need to cover fixed costs?
Divide fixed costs by contribution per unit. With €2,000 in fixed costs and €20 contribution per sale, 100 sales are needed.
How do I calculate contribution per unit?
Subtract variable unit costs from the net selling price. The remainder contributes toward fixed costs and profit.
What happens to break-even when variable costs rise?
Contribution per unit falls, so the sales volume needed to reach break-even increases. If contribution becomes zero or negative, positive fixed costs cannot be covered through more sales.
How does a price increase change my break-even point?
With costs unchanged, a higher selling price increases contribution and reduces the required sales volume. This assumes the unit-cost and product-mix model stays valid.
How do I calculate break-even for a service?
Use net revenue per engagement and the directly attributable variable costs. Compare the remaining contribution with fixed costs for the same period.
How many sales do I need for €5,000 in target profit?
Add target profit to fixed costs and divide by contribution per unit. Round up when sales must be whole units.
Worked example
€1,000 fixed cost, a €100 price, and €60 variable cost produce €40 unit contribution. Break-even is 25 units and €2,500 revenue. Forty sales generate €600 modeled profit.
Formula and calculation method
Calculate using your own assumptions
Enter values in a single currency. Results update as you change inputs. Save up to three scenarios for this session. Copy and CSV export include the assumptions and explanations used.
Practical use cases
- Compare monthly fixed cost with a sales plan.
- Test how higher unit costs move break-even.
- Compare price and volume scenarios.
Assumptions and limitations
Assumes one product or a constant mix, one time period, and unchanged unit costs. Capacity steps, varying product mixes, and taxes are not automatically included.
FAQ: Using the tool, capabilities, and calculation limits
What does reaching break-even mean?
The revenue and costs included in the model are equal.
Which expenses can count as fixed costs?
Examples include rent, certain software subscriptions, and other expenses that do not directly change with sales volume within the period and planning range.
What are variable unit costs?
Costs that vary with the quantity sold, such as materials or some shipping expenses.
What happens when contribution per sale is negative?
Each additional sale adds a negative contribution. Under those assumptions, no positive break-even volume covers positive fixed costs.
Can the model calculate sales needed for a target profit?
Yes. Target profit is included when calculating the required sales volume.
Why is there no break-even with negative unit contribution?
Each additional sale adds to losses. It cannot cover positive fixed costs; the unit economics must change first.
Which costs should be classified as fixed?
Include costs that do not rise directly with each additional unit within the chosen planning range. Classification depends on the business and period.
Why are whole break-even units rounded up?
A theoretical threshold of 12.2 units is not met by twelve sales. Indivisible products require at least thirteen.
Can I combine products with different margins?
Only with a supported, stable product mix and matching weighted-average assumptions. Changing that mix can invalidate the displayed threshold.
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Request a free, nonbinding consultation →Calculation model V1.1 · Formulas maintained with the tool · editorial update: November 9, 2026.