How to use
Enter fixed operating costs for one period, the selling price per unit and variable cost per unit. Use a unit that matches the business question: one item, one order or one repeatable job. Optional inputs let you set a target profit or test a planned whole-unit sales quantity.
Choose a period label that describes the costs you entered. Changing month to year changes the label, not the money amounts. Replace the fixed costs, target and plan with values for that new period yourself. Currency selection also changes the label without applying an exchange rate.
Calculation method
Contribution per unit = selling price − variable cost. When contribution is positive, theoretical break-even units = fixed costs / contribution. Whole-unit sales round this number upward. Revenue at that whole-unit quantity is quantity × selling price; profit is quantity × contribution − fixed costs.
A target profit adds to the fixed costs before dividing by contribution. A planned quantity instead calculates the revenue, variable costs, total costs and profit at that specific volume. The theoretical intersection and the rounded purchase or sales threshold are shown separately.
Worked example
Fixed costs of 5,000, a price of 50 and variable cost of 30 give a contribution of 20. Break-even is 250 units and revenue is 12,500. A profit target of 2,000 requires 350 units. At a plan of 300 units, revenue is 15,000, total costs are 14,000 and profit is 1,000.
For fixed costs of 1,001, theoretical break-even is 50.05 units. Selling 51 whole units gives revenue 2,550 and profit 19.
Limits and special outcomes
If contribution is nonpositive, additional sales cannot cover positive fixed costs. This is a valid modeled outcome, not a missing calculation. The tool assumes one product or a stable representative unit, constant unit price and cost, and fixed costs that do not step upward with volume. It does not optimize a mixed product portfolio.
Check the unit economics with the margin calculator and separate seller fees with the Etsy calculator.
For the measurement and planning details, read break-even sales: contribution, fixed costs and whole units.