Methodology
How this calculator works
The calculator subtracts variable cost, percentage selling fee and fixed per-sale fee from the unit price to find contribution per unit. Fixed costs divided by positive contribution are rounded up to whole break-even units. Target-profit units add the desired profit to fixed costs, while forecast profit and margin of safety use expected unit sales.
Worked example
Reading the result
If a product sells for 50 and contributes 20 after variable costs and fees, a business with 10,000 of fixed costs needs 500 units to break even. A target profit increases the required unit count.
Break-even guide
Classify costs before using the result
Fixed costs stay broadly stable across the planned sales range. Variable costs and selling fees rise with each sale. Misclassifying either group can make the break-even target look easier than it is.
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Continue the pricing calculation
Common questions
Frequently asked questions
What is the break-even point?+
It is the sales volume where total contribution equals fixed costs, producing neither operating profit nor operating loss.
What is contribution per unit?+
Selling price minus variable cost and per-sale fees. Each positive unit contribution helps recover fixed costs and then generate profit.
Why include payment or marketplace fees?+
Percentage and fixed selling fees reduce the cash contributed by each sale, which can raise the true break-even volume.
What is margin of safety?+
It measures how far expected sales are above or below break-even, shown as units and a percentage of expected volume.
Important scope
This is a single-product or stable product-mix model. It assumes constant price, cost and fees, and excludes tax, capacity limits, inventory timing and demand changes. This calculator is for planning and education, not personal financial advice.
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