CoachNed
Start free week

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

Contribution first: price minus variable. Units = (fixed + target profit) / contribution. Then whether that volume is believable given capacity.

Out loud
“Contribution is $22, 55% of price. We need 5,455 units to cover $120k, about $218k revenue. If the plant only does 4,000, we do not breakeven on this cost stack.”

Usual miss. A correct unit count with no sanity check. That scores like a calculator.

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.

Related tools