A clear result in a few inputs.
- Enter the requested values.Use consistent units and the real values for your scenario.
- Read the main result and breakdown.NumLuma recalculates immediately when an input changes.
- Check the formula and assumptions.Use the supporting context before making a real-world decision.
What this calculator does
Break-even analysis separates costs into fixed costs and variable cost per unit. Each sale contributes the difference between selling price and variable cost toward fixed costs. The calculator divides fixed costs by that contribution to estimate how many units are needed before profit begins.
What to know before you use the result
- Contribution per unit = price − variable cost.
- The purchase/sales target is rounded up because a fraction of a unit normally cannot complete break-even.
- The model assumes price, variable cost and fixed costs remain constant across the units analyzed.
Common mistakes to avoid
- Putting fixed costs into variable cost per unit.
- Using a price that is less than or equal to variable cost.
- Treating break-even as a cash-flow forecast when timing of payments is different.