Estimate the sales needed to cover costs
Enter fixed costs for one period, then selling price and variable cost for one unit. Use the same currency throughout. For multiple products, this simple calculation assumes a representative unit and a stable sales mix.
Understand contribution and break-even sales
Contribution per unit is selling price minus variable cost. Divide fixed costs by that contribution to find break-even units. The calculator also rounds up to whole units and shows the revenue from selling that many units.
With fixed costs of 1,000, a selling price of 25 and variable cost of 15, contribution is 10 and break-even is 100 units. If contribution is zero or negative, additional sales cannot cover positive fixed costs under these assumptions.
This is a planning estimate. It assumes constant prices and costs, excludes income tax and financing effects, and is not a forecast. See the SBA explanation of break-even analysis.
Compare estimates with recorded operations
Review operating expenses and sales reports alongside your retail management workflow. The free calculator runs independently of your merchant account.