Variare BUSINESS · EXPLORER 01 BREAK-EVEN
How much do you need to sell
before revenue covers your costs?
Change price, variable cost, or fixed costs and see the break-even point move.
Use the same monthly period for costs and sales.
Rent, salaries, software.
Materials, payment fees, shipping.
Your business inputs stay on your device.
500 units / month
Whole units required to fully cover costs
$25,000 revenue to break even
Revenue and total costs by units sold
USD / monthRevenue: $25,000 · Total costs: $25,000 · Difference: $0
View chart values
| Units sold | Revenue | Total costs |
|---|---|---|
| 0 | $0.00 | $10,000.00 |
| 200 | $10,000.00 | $16,000.00 |
| 400 | $20,000.00 | $22,000.00 |
| 600 | $30,000.00 | $28,000.00 |
| 800 | $40,000.00 | $34,000.00 |
Revenue meets
modeled costs.
Fixed costs do not change directly with each additional unit sold within the modeled range. Examples include rent, base salaries, and software subscriptions.
Variable cost per unit is associated with producing or selling one additional unit, such as materials, unit shipping, or transaction fees.
Contribution is the amount each unit contributes toward fixed costs and, after break-even, operating profit in this simplified model. Contribution margin expresses the same relationship as a percentage of price.
Break-even is where modeled revenue equals modeled total cost. If expected sales are included, margin of safety compares those units with the exact break-even volume.
Cost classification matters: misclassifying fixed and variable costs changes the result.
How we calculate it
Contribution margin = contribution per unit ÷ price. Whole units required are the mathematical break-even rounded upward; calculations retain the unrounded value.
Expected operating profit = expected units × contribution − fixed costs. Margin of safety = (expected units − exact break-even units) ÷ expected units.
$10,000 fixed costs ÷ ($50 price − $30 variable cost) = 500 units. Break-even revenue is $25,000.
Assumptions & limitations
One product or unit type; constant selling price and variable cost; fixed costs remain fixed across the modeled range; and all units are treated consistently. The model excludes taxes, financing costs, inventory timing, capacity constraints, and demand response.
Changing price in Compare isolates only its mechanical break-even effect. It does not assume real demand would remain unchanged. This is a simplified hypothetical operating model, not accounting or business advice.
Calculation standards
No live data is used. Calculations run locally in deterministic TypeScript functions with automated tests. Undefined denominators and non-positive contribution are handled explicitly rather than displayed as infinity.
Read our methodology and editorial standards.
Methodology version 0.1 · Reviewed September 29, 2026