Overview
Estimate how many units must be sold to cover fixed and variable costs.
Formula
Units = Fixed costs ÷ (Price − Variable cost)Methodology
Break-even units are rounded up to the next whole unit. Price must exceed variable cost per unit.
This is a simplified contribution-margin model. It assumes selling price and variable cost per unit remain constant and that the entered fixed costs cover the modeled period. It does not model taxes, financing costs, capacity constraints, mixed product margins, or changing prices.