The working behind the answer
How to use this calculator
Fixed costs do not change with the number of items in this model. Variable costs apply to each item sold. Keep the time period consistent, and include the costs you want the sales to cover. Whole-unit rounding means the calculator may show a small surplus at the first achievable break-even volume.
The formula
Calculate whole-unit break-even
Contribution per unit = price − variable cost; units = fixed costs ÷ contribution, rounded up
A worked example
With £1,200 of monthly fixed costs, £8 variable cost per item and a £20 selling price, each item contributes £12. You need 100 sales to cover those stated costs, producing £2,000 in revenue.
Good to know
The model assumes a constant selling price, constant cost per unit and that all produced units are sold. It does not model bulk discounts, capacity limits or changes in fixed costs. If each sale contributes nothing or makes a loss, positive fixed costs cannot be covered by increasing sales.
Common questions
Why is the answer rounded up?
You cannot usually sell part of a physical item. If the theoretical result is 10.2 units, you need 11 whole sales to cover the stated costs.
Is the revenue figure my profit?
No. Revenue is the total sales value. The surplus shown separately deducts the fixed and variable costs you entered.