Manufacturing Economics
Break-Even Production Calculator
Find how many units you need to sell to cover costs — and what it takes to hit a profit target.
Selling Price per Unit
$
Revenue collected per unit sold
Variable Cost per Unit
$
Materials, direct labor, packaging — cost that scales with each unit
Base Fixed Costs (period)
$
Costs that don't change with production volume
🏭 Additional Fixed Costs
Add cost
🎯 Target & Forecast
Target Profit (period)
$
Profit you'd like on top of covering costs
Expected Sales Volume
units
Forecast volume, used for margin of safety
Margin Ratio
0%
Break-Even Volume
0 units
to cover all costs
Break-Even Revenue
$0
Contribution Margin / Unit
$0
Units for Target Profit
0 units
Margin of Safety
0%
📊 Cost & Volume Breakdown
| Metric | Value | Note |
|---|
How the calculation works
Break-Even Units = Fixed Costs ÷ (Price − Variable Cost) | Contribution Margin = Price − Variable Cost
- Contribution Margin = Selling Price − Variable Cost per Unit — what each sale contributes toward fixed costs
- Break-Even Units = Total Fixed Costs ÷ Contribution Margin
- Break-Even Revenue = Break-Even Units × Selling Price
- Units for Target Profit = (Fixed Costs + Target Profit) ÷ Contribution Margin
- Margin of Safety = (Expected Sales − Break-Even Units) ÷ Expected Sales × 100 — how far a sales drop could go before you lose money
⚠️ This assumes costs and price stay constant per unit regardless of volume — real production often has step-costs, bulk discounts, or capacity limits. Treat this as a planning estimate, not a guaranteed outcome.