Key Formulas:
Contribution Margin per Unit = Selling Price – Variable Cost
Break-Even Point (units) = Fixed Costs ÷ Contribution Margin per Unit
Price you sell each unit for
Direct costs per unit (materials, labor, etc.)
Rent, salaries, insurance, etc.
Break-Even Point:
Contribution Margin per Unit:
Contribution Margin Ratio:
Break-Even Revenue:
Safety Margin (at 1.5x):
Financial Analysis:
How to Use Contribution Margin Per Unit Break Even Formula Calculator
- Input selling price, variable costs, and fixed costs
- Hit calculate to find break-even point in units
- See contribution margin, break-even revenue, and financial analysis