Calculator
Breakeven calculator
Contribution first, then units, then revenue. Default: $40 price, $18 variable, $120k fixed.
- Contribution / unit
- $22
- 55% of price
- Units to target
- 5,455
- (fixed + target) / contribution
- Revenue at that volume
- $218,200
- Covered fixed + target
- $120,000
How to say it
Default run: contribution $22 (55% of price), 5,455 units to cover $120k, about $218k revenue. If the plant only does 4,000 units, the answer is “we do not breakeven on this cost stack,” not a bigger spreadsheet.
Growth rates live on the CAGR calculator. Pricing trees are in the issue tree examples.
FAQ
What is the breakeven formula?
Units = (fixed cost + target profit) / (price − variable cost). Contribution margin first. If contribution is not positive, there is no finite breakeven.
Do I include target profit?
Only if the prompt asks for a profit hurdle. Zero target is true breakeven. A PE case often wants a return, not just covering rent.
What do I say after the number?
Whether that volume is believable given capacity, share, and time. A correct unit count with no sanity check scores like a calculator.
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