Break-even units — how many sales cover fixed costs
Enter fixed costs that do not rise with each sale, your price per unit, and variable cost per unit. You will see contribution per unit and how many whole units you need before the first dollar of profit.
Results
Contribution per unit: 18
Units to break even: 28
Formula
contribution=price−variable; units=ceil(fixed÷contribution)
How the numbers are calculated
- Contribution per unit = 40 − 22 = 18
- Units to break even = ceil(500 ÷ 18) = 28
Busy weekends that never clear break-even feel productive and still lose money. Knowing the unit count before a market or product launch sets a floor: sell fewer than that, and every “win” is still in the red.
Contribution is simply price minus variable cost — the cash each unit leaves toward covering fixed costs. Divide fixed costs by that contribution and round up. If price is not above variable cost, the page warns you: no volume of sales can break even until you fix the unit economics.
Revisit the number when materials jump, booth fees change, or a discount week shrinks contribution. Pair a shaky sale idea with discount impact so you see both the unit hit and the recovery volume.
How to use
- Enter fixed costs for the period or launch
- Enter selling price and variable cost per unit
- Read contribution and units to break even
Why this calculator
- Shows contribution per unit in plain numbers
- Rounds up to whole units you can actually sell
- Warns when price cannot cover variable cost at all
Good for
- Craft fair booth planning
- New SKU launches
- Tool or mold investments
Tips
- If you price on take-home cash, put platform fees inside variable cost.
- Update the sheet the week materials or booth fees jump.
- Stress-test a promo with discount impact before you cut price.
Examples
| Input | Output | Note |
|---|---|---|
| Fixed $500, price $40, variable $22 | 28 units to break even | Contribution $18; ceil(500 ÷ 18) = 28 |
| Booth $180 + molds $120, price $28, variable $16 | 25 units before the booth pays for itself | Put one-time molds in fixed for the first market season |
Break-even FAQ
- What counts as fixed cost?
- Booth fees, one-time molds, monthly software, or a photography kit — costs that stay put whether you sell 1 piece or 100 that month.
- What belongs in variable cost?
- Materials, packaging per order, and marketplace fees you model on a net price. If fees are a %, either net the price or bake an average fee into variable.
- Price not set yet?
- Build a list price with Craft pricing first, then drop that price and your true variable cost here.
- Why does the page round up?
- You cannot sell 27.3 units. Ceiling to a whole unit is the honest shopping and production target.