Smart Unit ConvertersSmart Unit Converters

Break-even Calculator

Find the units and revenue needed to cover your fixed and variable costs.

Selling price must be higher than variable cost per unit for break-even to be possible.

?What is the Break-even Calculator?

A break-even calculator tells you how many units you must sell — and at what total revenue — to cover all your fixed and variable costs. The break-even point is where profit is exactly zero. Selling any more than this generates profit; any less generates losses. It is essential for business planning, pricing decisions, evaluating the viability of a new product or venture, judging whether a startup is defensible, and deciding when to scale or shut down a product line. Every entrepreneur and product manager should understand their break-even number before committing capital.

The Formula

Break-even Units = Fixed Costs ÷ (Price per Unit − Variable Cost per Unit). Revenue = Units × Price.

The denominator (Price − Variable Cost) is the 'Contribution Margin' — the dollars each sale contributes toward covering fixed costs.

Practical Examples

1

Fixed PKR 500,000, variable PKR 150/unit, price PKR 500 → break-even at 1,429 units (≈ PKR 714,500 revenue).

2

Fixed $20k, variable $5, price $25 → break-even at 1,000 units.

3

Restaurant: $30,000 monthly overhead, $8 food cost, $25 meal price → 1,765 meals/month to break even.

4

SaaS startup: $50k fixed, $2 server cost per user, $10/month subscription → 6,250 active subscribers to break even.

Frequently Asked Questions

Costs that don't change with production volume — rent, salaries, insurance, software subscriptions, equipment leases. You pay them even if you sell zero units.