What are fixed costs?

Fixed costs remain the same regardless of production volume. Examples include rent, salaries, insurance, and loan payments.

What are variable costs?

Variable costs change with production volume. Examples include raw materials, packaging, shipping, and sales commissions.

How can I lower my break-even point?

Reduce fixed costs, lower variable costs, or increase your price. Each of these widens your contribution margin.

What is contribution margin?

Contribution margin is the difference between the selling price and variable cost per unit. It shows how much each unit sold contributes to covering fixed costs.

What are fixed costs?

Fixed costs remain the same regardless of production volume. Examples include rent, salaries, insurance, and loan payments.

What are variable costs?

Variable costs change with production volume. Examples include raw materials, packaging, shipping, and sales commissions.

How can I lower my break-even point?

Reduce fixed costs, lower variable costs, or increase your price. Each of these widens your contribution margin.

What is contribution margin?

Contribution margin is the difference between the selling price and variable cost per unit. It shows how much each unit sold contributes to covering fixed costs.

Educational Tool — Estimates for educational purposes only. Not financial advice.Disclaimer

Every business needs to know its break-even point — the number of units sold where total revenue equals total costs. This calculator helps you determine that critical threshold for pricing and planning.

Break-Even Calculator

Calculate the number of units you need to sell to cover your fixed and variable costs.

February 2026

Total Fixed Costs

Price per Unit

Variable Cost per Unit

Your Results

Break-Even Units

1,667

Break-Even Revenue

$83,350.00

Contribution Margin

30.00%

Contribution Margin Ratio

60.00%

Wally's Analysis

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AI Disclosure

Wally's Analysis uses GPT-4o-mini for educational interpretations. AI responses are not personalized financial advice and may be inaccurate. All core calculations are deterministic — AI only interprets results.AI Transparency →

Accuracy Commitment

Industry-standard formulas vetted against IRS, SSA, BLS, CFPB. Client-side calculations. Regularly updated.

This calculator provides estimates for informational purposes only and does not constitute financial, tax, or legal advice. Consult a licensed professional before making financial decisions.

Updated: February 2026 · Methodology

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