Break-Even with $5,000 Fixed Costs at $20 Profit Margin
With $5,000 in fixed costs and a $20 contribution margin per unit, you need to sell 250 units to break even.
How to use this tool
- Enter total fixed costs, selling price per unit and variable cost per unit in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your break-even units and the full breakdown beneath it.
Calculate how many units you must sell to cover $5,000 in fixed costs when each unit contributes $20 toward profit.
Frequently asked questions
- What is contribution margin?
- Contribution margin is the selling price minus variable cost per unit. Each unit sold above break-even contributes this amount to profit.
- What are fixed vs. variable costs?
- Fixed costs don't change with production volume (rent, insurance, salaries). Variable costs scale with units sold (materials, commissions, packaging).