Break-Even Units Calculator

Calculate break-even quantity, revenue, and contribution margin.

By Konstantin Iakovlev · Updated April 2026 · Source: SBA — Business Guide

$
$
$

Break-Even Units

3,334

Break-Even Revenue

$83,350.00

Margin per Unit

$15.00

Analysis

Contribution Margin$15.00 (60.0%)
Break-Even Units3,334
Break-Even Revenue$83,350.00

Use the Break-Even Units Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Every business has a sales volume at which revenue finally covers every cost it incurs, and that figure is the break-even point in units. Pinning it down is the foundation of any serious plan for pricing, staffing, or expansion. Heading into 2026, with an anticipated average inflation rate of 2.5% pushing costs upward, the number carries even more weight for anyone trying to protect a margin.

To find break-even units, divide total fixed costs by the contribution margin earned on each unit sold. That per-unit contribution margin is what remains after you subtract the variable cost of producing one unit from the price you sell it for. Working the division gives you the precise quantity at which profit lands at zero, with every unit beyond that point adding to the bottom line.

Accurate results hinge on classifying your costs correctly; treating a fixed cost as variable, or the reverse, throws the whole answer off. Bear in mind too that the formula captures a single moment and assumes your selling price and variable cost per unit stay put. When you read the output, weigh the odds that supplier prices or customer demand will move during 2026 and shift the target along with them.

Example: Launching a New Eco-Friendly Water Bottle in 2026

  1. 1 Our new eco-friendly water bottle has a selling price of $25 per unit. The variable cost per unit (materials, labor, packaging) is $10. Our total fixed costs (rent, salaries, marketing for the year) amount to $50,000.
  2. 2 First, calculate the contribution margin per unit: $25 (selling price) - $10 (variable cost) = $15. Next, calculate the break-even units: $50,000 (fixed costs) / $15 (contribution margin) = 3,333.33 units.
  3. 3 To break even, the company needs to sell approximately 3,334 water bottles. At this sales volume, the total revenue would be $25 * 3,334 = $83,350, and the total costs would also be $50,000 (fixed) + ($10 * 3,334) = $83,340, resulting in a near-zero profit.
  4. 4 Selling 3,334 water bottles in 2026 will cover all costs associated with the product. Any sales beyond this point will generate profit, while sales below this point will result in a loss. This figure provides a clear sales target for our marketing and sales teams.

Source: SBA — Business Guide · Last updated: April 2026

Frequently Asked Questions

How do I calculate my break-even point in units?
Divide your total fixed costs by the contribution margin per unit (selling price minus variable cost per unit). The result is the number of units you must sell to cover all costs with zero profit.
What happens to break-even if I raise my price?
Raising your price increases the contribution margin per unit, which lowers the break-even quantity. However, you must also consider whether higher prices will reduce demand enough to offset the benefit.
Should I include depreciation in break-even analysis?
Yes. Depreciation is a fixed cost that should be included in your break-even calculation even though it is a non-cash expense, because it represents the cost of using your assets over time.

You might also need

Self-Employment Tax Calculator 2026 — SE Tax & Quarterly Payments

Calculate SE tax, quarterly estimated payments, and total tax burden for freelancers and 1099 contractors. Free, instant results based on 2026 IRS rates.

LLC vs S-Corp Tax Comparison Calculator

Compare tax liability as an LLC vs S-Corp. See how much you can save on self-employment tax with an S-Corp election.

W-2 vs 1099 Comparison Calculator

Compare take-home pay as a W-2 employee vs 1099 contractor. Find the equivalent 1099 rate to match your W-2 salary.