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Finance & Business · pattern A, Numeric fields

Break-even point in units and revenue.

Enter fixed costs, price and variable cost per unit for the break-even volume, the contribution per unit and the margin of safety at a target volume.

Inputs

The formula used

break-even units = fixed costs ÷ (price − variable cost)

The denominator is the contribution per unit — what each sale adds toward covering fixed costs. If it is zero or negative, no volume breaks even.

Break-even units

1,600.0

Contribution per unit
15.00
Contribution margin
42.86 %
Break-even revenue
56,000.00
Profit at the target volume
13,500.00
Margin of safety
36.00 %
Units for £10,000 profit
2,267

Contribution per unit is the number that matters.

Every unit sold contributes price minus variable cost toward the fixed costs; once they are covered, each further unit's contribution is profit. This is why a small price increase moves break-even so much more than a small cost reduction on a low-margin product — the change lands entirely in the contribution.

Questions about break even

What is the margin of safety?
How far sales can fall below the target before you reach break-even, expressed as a percentage. It is a measure of how much risk the volume assumption carries.
Do stepped fixed costs break the model?
Yes. If capacity requires a second machine or shift at some volume, break-even has to be computed separately for each step.
Can break-even be used for services?
Yes, with the unit defined as an hour, a client or a project. The arithmetic is unchanged; defining the unit honestly is the hard part.

A calculator handles the arithmetic. It cannot teach you the method.

If the number is not the part you are stuck on, that is what the service is for — a specialist who explains the working, not just the answer.

These are coursework tools. Nothing here is financial advice, no figure accounts for tax rules in your jurisdiction, and no result should be relied on for a real borrowing or investment decision.