MarginKoala

How many units do I need to sell to cover my fixed costs?

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Numbers to enter
Enter the costs that stay broadly the same even when sales move, what you charge for one unit, and the variable cost caused by selling one unit.
$

Use costs that do not increase each time one more unit is sold. Finance term: fixed costs.

$

What the customer pays for one unit.

$

Product cost plus other costs that occur because that unit is sold, such as packaging, transaction fees or delivery you pay.

Koala's Calculated Result
Unit volume where total contribution equals the fixed costs entered.

Add positive fixed costs and a selling price to calculate break-even volume.

MarginKoalaKoala's Professional Opinion

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Frequently asked questions

What is the break-even units formula?

Break-even units = fixed costs divided by the profit you make on each unit (sale price minus the cost that scales with each sale). Every unit sold above that number adds profit; below it, you are still covering overhead.

Break-Even Units

Why does the calculator say I cannot break even?

If sale price is at or below variable cost per unit, each additional unit contributes zero or less toward fixed costs, so no finite sales volume reaches break-even under those inputs. Price, variable cost and fixed cost are separate levers to test as scenarios rather than assuming one action is correct.

Break-Even Units

What counts as a fixed cost?

Fixed costs are overhead that does not move with the number of units sold — rent, salaried staff, software subscriptions, insurance, depreciation. Anything that scales with units produced is a variable cost, not a fixed cost.

Break-Even Units

What is variable cost?

Variable cost is the per-unit cost that scales with sales. Start with what the item costs you (materials, supplier, manufacturing), then add per-unit overhead: packaging, sales commissions, payment-processing fees, per-order delivery.

Break-Even Units

Educational use, not financial advice. Numbers are estimates for planning; consult a qualified professional before acting on them.