Finance tools

How many units cover your fixed costs?

Set your monthly fixed costs, your price, and what each unit costs you to deliver. The result is the volume where the month stops losing money.

Break-even snapshot

374 units

$75 contribution margin per unit.

Fixed costs / mo ($)$28,000

Price per unit ($)$120

Variable cost / unit ($)$45

How to read this

Contribution margin is price minus variable cost. If it is zero or negative, no volume gets you to break-even — the price or the cost has to move first.
Fixed costs mean the ones that do not change with volume: rent, salaries, software, insurance.
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