Profit margin
See profit, margin, and markup side by side.
Find how many units cover your fixed costs.
Find how many units cover your fixed costs.
Fixed costs: 10000; Selling price per unit: 50; Variable cost per unit: 30.
Units to break even: 500 ; Revenue at break-even units: 25,000 .
Assumes constant price and cost per unit. Selling price must exceed variable cost.
Results are rounded for display; calculations use unrounded values. Read our calculation methodology.
The unit count covers fixed costs using each unit’s contribution: selling price minus variable cost. Fractional units are rounded up.
Estimate a minimum sales volume for a product with a constant selling price and unit cost.
| Input | What to enter |
|---|---|
| Fixed costs | Enter a number of at least 0 and no more than 1000000000000. |
| Selling price per unit | Enter a number of at least 0.000001 and no more than 1000000000000. |
| Variable cost per unit | Enter a number of at least 0 and no more than 1000000000000. |
There is no positive contribution to fixed costs. A finite break-even sales volume cannot be found under those assumptions.
It covers the entered costs in this simplified model. Additional costs, unsold stock, or changing unit economics can alter the outcome.