250 is the example result. A positive unit contribution is required to cover fixed cost. Fractional units describe the mathematical threshold; whole-item sales need rounding upward.
Estimate how many units must sell to cover fixed costs. The model uses the contribution from each unit and rounds the required sales volume up.
Find the volume that covers fixed costs
Selling price less variable cost is the contribution per unit. Fixed costs divided by that contribution give the mathematical break-even volume. The whole-unit result is appropriate when partial units cannot be sold.
When to use this result
Use this before committing to a launch or a capacity increase. Compare the required units with realistic demand and the number you can deliver in the period.
Check before you act
If variable cost equals or exceeds selling price, additional units do not cover fixed costs under this model. Increasing volume alone will not repair that pricing relationship.
Example with the supplied inputs
Fixed costs: 10000; Selling price per unit: 100; Variable cost per unit: 60. Result: 250. The values are illustrative.
Compare one changed input
Fixed costs changes from 10000 to 11000. The result becomes 275. All other inputs remain fixed.
Calculation rule
Result = (([Fixed costs]) ÷ ([Selling price per unit] − [Variable cost per unit]))
Inputs and output
| Input | Example value | Entry convention |
|---|---|---|
| Fixed costs | 10000 | Use fixed costs on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
| Selling price per unit | 100 | Use selling price per unit on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
| Variable cost per unit | 60 | Use variable cost per unit on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
Output: 250 is the example result. A positive unit contribution is required to cover fixed cost. Fractional units describe the mathematical threshold; whole-item sales need rounding upward. Use the formula to distinguish a cash amount, count, percentage or ratio.
How to use the page
Collect the inputs
Gather Fixed costs, Selling price per unit, Variable cost per unit. Use one period and the units shown in the form.
Run the calculation
Enter the values and select the action. The calculation rule above explains how the inputs produce the result.
Compare a scenario
Change Fixed costs on its own, keeping the other inputs fixed. Read both results before changing another assumption.
Worked example
With the example inputs listed above, the result is 250.
Change Fixed costs from 10000 to 11000 while keeping every other value fixed. The result becomes 275. This comparison isolates that input; it does not forecast how other variables will respond.
Check the stated formula, units and limits before using the result in a decision.
Keep the displayed formula, input units and model scope with the result. Corrections or questions can be sent through the request section on this page.
Content updated: October 11, 2026