When to use this calculator
Find the unit selling price that covers entered costs at a planned sales volume. Assumes all planned units sell and fixed and variable costs stay constant.
Explore the pricing & break-even calculators for other questions in this topic. For a related calculation, use the Break Even Revenue Calculator: Estimate sales revenue needed to cover fixed costs at a chosen contribution ratio.
PUTTING IT INTO PRACTICE
Break Even Price: a worked example
The values below are an illustrative example, not a recommendation. Replace them with measurements or assumptions that match your question.
| Input | Example value |
|---|---|
| Period fixed costs | 1,000 |
| Variable cost per unit | 10 |
| Planned unit sales | 100 |
| Result | 20 per unit |
- Check the input labels and enter the example values above.
- Apply the relationship: Break-even price = variable cost + fixed costs/planned units.
- The result is 20 per unit, rounded for display.
How to interpret your result
Assumes all planned units sell and fixed and variable costs stay constant.
Margin uses sales revenue as its denominator, while markup uses cost. Contribution deducts variable costs before fixed costs. Break-even calculations assume the same prices, variable costs and product mix remain in place.
Frequently asked questions
Why are margin and markup percentages different?
They use different bases. The same monetary profit is divided by selling price for margin and by cost for markup.
When is the break even price calculator useful?
Find the unit selling price that covers entered costs at a planned sales volume. Assumes all planned units sell and fixed and variable costs stay constant.
How do I use the break even price calculator?
Enter period fixed costs, variable cost per unit, planned unit sales. The result updates automatically. Use the units shown beside each input; the example values illustrate the method.
Which formula does this calculator use?
Break-even price = variable cost + fixed costs/planned units.
What should I check before using the result?
Assumes all planned units sell and fixed and variable costs stay constant.
How are results rounded?
Scalar numbers display up to six decimal places, with scientific notation for very large or small values. Text, fraction, date and schedule outputs use the format described on the tool. Intermediate calculations use JavaScript floating-point arithmetic. Keep sensible precision for your measurements.
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