Details

Fixed costs per period ($)

Variable cost per unit ($)

Selling price per unit ($)

Result

Break-even units

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Break-even revenue—

Contribution margin—

Margin ratio—

Profit at 2× break-even—

Break-even point = Fixed costs ÷ Contribution margin per unit. The contribution margin is selling price minus variable cost — the amount each unit contributes toward covering fixed costs and generating profit. Above break-even, every unit sold generates profit equal to the contribution margin.

Break-Even Calculator