Break-Even & Unit Economics Calculator
Find out exactly how many units (or customers) you need to sell to cover your costs. Get your contribution margin, break-even point in units and revenue, and your margin of safety.
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Frequently asked questions
How do you calculate the break-even point?
Break-even units = fixed costs ÷ contribution margin per unit, where contribution margin = price − variable cost per unit. Multiply by price to get break-even revenue.
What is contribution margin?
Contribution margin is the amount each sale contributes toward fixed costs and profit, after covering its own variable cost. It equals price minus variable cost per unit.
What is margin of safety?
Margin of safety is how far sales can drop before you fall below break-even, expressed as a percentage of current sales: (current units − break-even units) ÷ current units.
Why does lowering variable cost help more than cutting fixed cost?
Lowering variable cost increases the contribution margin on every unit, which reduces the number of units needed to cover fixed costs. It compounds across all sales, not just one line item.