Break-Even for Low-Margin Product at $5 Contribution
With only a $5 contribution margin per unit, covering even $10,000 in fixed costs requires selling 2,000 units.
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.
See how a thin $5 contribution margin affects the break-even volume for a low-margin consumer product.
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).