What's contribution margin?

Selling price minus variable cost — what each unit contributes toward fixed costs.

Fixed vs variable cost?

Fixed costs don't change with sales volume (rent); variable costs are per-unit (materials).

The business can never break even — you must raise price or cut cost.

No, it's a planning tool. Success depends on demand, execution, and marketing.

No, the calculation is entirely local.

How many units do you need to sell to cover your costs?

Practical calculatorFully localized assumptionsCountry-specificInteractive chart

Last updated: 2026-05-16

Source: default

Break-even units = Fixed / (Price − Variable)

What's contribution margin?: Selling price minus variable cost — what each unit contributes toward fixed costs.
Fixed vs variable cost?: Fixed costs don't change with sales volume (rent); variable costs are per-unit (materials).
What if my price is below variable cost?: The business can never break even — you must raise price or cut cost.
Does the result guarantee success?: No, it's a planning tool. Success depends on demand, execution, and marketing.
Do you store my data?: No, the calculation is entirely local.

Results are estimates and not professional advice. Verify important decisions with a qualified professional.