How it works
Break-even units = fixed costs ÷ (price − variable cost), rounded up to a whole unit.
A worked example
Fixed costs of 10,000, price of 50 and variable cost of 30 require 500 units to break even.
What to keep in mind
Assumes a single product or constant product mix, fixed prices and constant per-unit costs. Use one consistent time period for fixed costs and sales.
A common question
Why is the result rounded up?
You need to sell complete units. Rounding down could leave some fixed costs uncovered.
For general information and planning, not personalised financial or tax advice. Verify important decisions with a qualified adviser.