Free tool
Enter your fixed costs, price per unit, and variable cost per unit to see exactly how many units - and how much revenue - it takes to break even.
Updates live as you typeEnter your numbers to see the break-even point.
Encodr works the same way for an intro accounting course as for MCAT content - a spaced-repetition feed for the formulas you need cold on exam day.
Get started freeBreak-even units solve for where total revenue equals total cost:
break-even units = fixed costs ÷ (price per unit − variable cost per unit).
The denominator is your contribution margin per unit - what's left from each sale
after variable costs, which is the amount actually available to cover fixed costs and then profit.
Multiply the break-even unit count by price per unit to get break-even revenue. If price per unit is
at or below variable cost per unit, there's no break-even point at any volume - every unit sold loses
money, and the fix is pricing or cost structure, not volume.
The fixed-cost, price, and variable-cost math behind every intro accounting and entrepreneurship break-even problem.
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