How do I find the price I need if my sales volume is capped?

Rearrange the formula to solve for price: Price = Variable cost + (Fixed costs ÷ maximum units). If you can realistically sell only 300 units with $10,000 fixed costs and $30 variable cost, you need Price = 30 + (10,000 ÷ 300) = $63.33 just to break even.

Break-Even Calculator

Q: How do I calculate the break-even point?

Break-even units = fixed costs ÷ (price − variable cost per unit). If fixed costs are $10,000, price is $50, and variable cost is $30, you break even at 10,000 ÷ 20 = 500 units.

Q: What is contribution margin?

The price minus the variable cost per unit — the amount each sale contributes toward covering fixed costs and then profit. In the example above it is $20 per unit.

Q: How do I reach break-even faster?

Raise the price, cut variable cost per unit, or reduce fixed costs. Because break-even divides fixed costs by contribution margin, even a small price increase or cost cut can lower the units needed substantially.

Q: Does break-even tell me anything about profit?

Not directly — break-even is where profit is exactly zero. Every unit sold beyond the break-even point contributes its full contribution margin straight to profit, which is why the target-profit field converts a profit goal into a unit count using the same formula.

The number every business owner needs: how many units — and how much revenue — it takes just to cover your costs before you make a dime of profit.

Written by the Calculator Index team · Last reviewed September 2026

Break-even point

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Break-even revenue

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Contribution margin / unit

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Contribution margin ratio

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Units for target profit

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The break-even formula

Contribution margin = Price − Variable cost
Break-even units = Fixed costs ÷ Contribution margin
For a target profit: (Fixed costs + Target) ÷ Contribution margin

Worked example

Fixed $10,000, price $50, variable $30:

Contribution margin = $20/unit → break-even = 10,000 ÷ 20 = 500 units = $25,000 in revenue.

Want $6,000 profit? (10,000 + 6,000) ÷ 20 = 800 units.

Worked example — solving for price when volume is capped

A small café has $10,000 in monthly fixed costs and $30 variable cost per order, but the kitchen can realistically only handle 300 orders a month. What price is required just to break even?

Rearranging the formula: Price = Variable cost + (Fixed costs ÷ Units) = 30 + (10,000 ÷ 300) = 30 + 33.33 = $63.33. Any price below that, and 300 orders won't cover the fixed costs — capacity, not demand, sets the price floor here.

How break-even shifts with price

Price	Contribution margin	Break-even units
$40	$10	1,000
$45	$15	667
$50	$20	500
$55	$25	400
$60	$30	334

(Fixed costs held at $10,000, variable cost at $30 throughout.) Notice the break-even count doesn't fall proportionally to the price increase — a 50% price jump from $40 to $60 cuts required units by two-thirds, not by half, because contribution margin itself is growing as a share of price.

Common break-even mistakes

Treating break-even as a profit target rather than the zero-profit point. Units beyond break-even are where profit actually starts — use the target-profit field to translate a real profit goal into a unit count.
Leaving semi-variable costs out of both fixed and variable buckets. Costs like utilities that have a base charge plus a usage component need to be split, or the model will understate true costs at both low and high volume.
Assuming break-even volume is achievable just because the math works out. As the capacity example above shows, the price the math requires may be unrealistic for the market, or the unit volume needed may exceed what capacity can actually produce.

Using break-even to make decisions

Break-even turns pricing and cost questions into concrete unit targets. A price increase from $50 to $55 lifts the contribution margin to $25 and drops break-even to 400 units — a 20% reduction from a 10% price bump, because fixed costs spread over a bigger margin. That leverage is why cutting variable cost or nudging price often beats chasing volume. Pair this with the margin calculator for pricing and the markup calculator for cost-plus targets; for a solo operation, factor self-employment tax into the profit you actually keep.

Frequently asked questions

How do I calculate the break-even point?

Fixed costs ÷ (price − variable cost). $10,000 ÷ ($50 − $30) = 500 units.

What is contribution margin?

Price minus variable cost per unit — what each sale contributes to fixed costs, then profit.

How do I reach break-even faster?

Raise price, cut variable cost, or lower fixed costs — each shrinks the units needed.

How do I find the price I need with a capped sales volume?

Price = Variable cost + (Fixed costs ÷ max units). At 300 units, $10,000 fixed, $30 variable: 30 + 33.33 = $63.33.

Does break-even tell me anything about profit?

Break-even is where profit is exactly zero — every unit beyond it contributes its full margin straight to profit.

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Note: A simplified single-product model; real businesses have mixed products and semi-variable costs. Not financial advice. Last reviewed: September 2026.