Why does the answer round up?
A fraction of a unit cannot normally be sold, so the practical estimate is the next whole unit.
Break-Even Calculator
Estimate the unit sales needed to cover fixed costs at a chosen price.
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Adjust the values below to get a clear estimate.
Fixed costs divided by unit contribution
Subtract variable cost per unit from selling price to get contribution. Divide fixed costs by contribution and round up to the next whole unit for an operational threshold.
Units = fixed costs / (selling price − variable cost per unit)Worked example
A single-product threshold
Inputs: fixedCosts: 12,000 · variableCost: 8 · sellingPrice: 20
Illustrative result: 1,000 units
Each unit contributes 12 toward fixed costs, so 12,000 divided by 12 reaches break-even at 1,000 units.
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Frequently asked questions
What if price is below variable cost?
There is no break-even volume under these assumptions because each sale adds to the loss.