Educational business arithmetic
See when volume covers the fixed costs.
Worksheets for break-even units, contribution margin and the assumptions behind a simple volume model. Educational only — not investment, capital advisory, succession or M&A services.
Break-even calculator →Start with a clear next step.
Begin with your own evidence
Break-even units = fixed costs ÷ (price − variable cost per unit). Contribution margin per unit is the amount each sale leaves after its variable cost. Contribution margin ratio is that amount divided by price.
Example: $5,000 fixed costs, $40 price and $25 variable cost leave $15 contribution per unit. Break-even is 5,000 ÷ 15 ≈ 333.33 units, or about $13,333.33 of revenue at that price.
Fixed and variable labels must stay consistent. Overhead left out of “fixed,” volume discounts, returns, tax and financing can change the result. This hub does not set prices, forecasts or suitability for any business decision.