Formula and example
How it is calculated
Break-even units = fixed costs / (selling price − variable cost per unit)
Worked example
€5,000 fixed costs and a €20 contribution per unit require 250 units, generating €12,500 revenue at €50 per unit.
Things to check
- Selling price and variable cost must use the same tax basis. Whole units are rounded up to reach break-even.
- Use one currency consistently. Examples use euros; the calculation works with any currency.