FounderMage

Pricing & margins

Break-Even Calculator

See how many units cover fixed costs at the contribution you actually earn, then test a price change without rebuilding the model.

Decision: At what volume do I stop losing money on these costs and this price?

This tool runs in your browser. FounderMage does not send the numbers you enter to our servers.

Result

  • Base units to break even

    Base units to break even: 500

    Revenue $25,000.00

  • Price 10% units

    Price 10% units: 400

  • Price needed to break even at 400 units

    Price needed to break even at 400 units: $55.00

How to read the result

Fewer units to break even means each sale covers more of the fixed costs you entered. It is not the correct price to charge.

Calculated facts

Totals and thresholds come only from the values on this page. They describe the math, not what you should do.

Still a judgment call

Risk, timing, customers, and judgment stay outside the calculator. A stronger number can still be the wrong path.

Methodology

Contribution is price minus variable cost. Break-even units are fixed costs ÷ contribution when contribution is positive. Break-even revenue is units × price. A price-change case repeats the identity at the new price. Required price for a volume is variable cost + fixed costs ÷ units.

Assumptions

  • Fixed costs do not change with volume in this model.
  • One product or an average unit you trust.

Examples

Positive contribution

$10,000 fixed costs, $50 price, $30 variable cost is $20 contribution and 500 units, or $25,000 revenue.

How to use this tool

  1. Enter fixed costs, selling price, and variable cost per unit.
  2. Optionally enter a price-change percent.
  3. Read units, break-even revenue, and the price needed for a stated volume.

Limitations

  • Taxes, discounts, and unused capacity are omitted unless you fold them into the inputs.
  • Not pricing or accounting advice.

Questions

Why can units be blank?
If price does not exceed variable cost, contribution is zero or negative and fixed costs are never recovered.
Is this the same as a generic break-even calculator?
The core identity is the same. This page adds a price-change case and the price that would break even at a chosen volume.

Related decisions

Break-Even Calculator — Units and Revenue