A unit-economics scenario. It excludes taxes, capacity limits, changing prices, and step-fixed costs unless you include them in your inputs.
Planning estimate only. Platform fees, taxes, payment costs, and policies can change; verify current terms before pricing.
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How this calculator works
Formula
Contribution per unit = price − variable cost. Required whole units = ceiling((fixed costs + target profit) ÷ contribution per unit).
Worked example
$10,000 fixed costs, $50 price, and $30 variable cost produce $20 contribution per unit and a 500-unit break-even threshold.
Assumptions to verify
- Price and variable cost per unit remain constant across the modeled volume.
- Fixed costs do not step upward at higher capacity levels.
- All produced units are sold; taxes, refunds, discounts, and financing are excluded unless entered in costs.
Frequently asked questions
Why round units upward?
A fractional unit cannot usually be sold, so the threshold is rounded up to the next whole unit.
Can this include a profit goal?
Yes. Target profit is added to fixed costs before dividing by contribution per unit.
What if variable cost equals price?
There is no positive contribution to cover fixed costs, so no finite break-even unit count exists.
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