The operating economics desk
What does it take
to break even?
Test price, variable costs and fixed commitments. Your inputs remain in your browser.
Model: fixed costs ÷ (selling price − variable cost). Use one product and a consistent period. Include only the costs you intend this model to cover.
Whole units needed to cover modeled costs
Whole units round upward. This operating model does not calculate cash timing, loan eligibility or costs left outside your assumptions.
Read the result in context.
At a $200 selling price and $80 variable cost, each unit contributes $120. With $12,000 in period fixed costs, the model needs 100 units. A lower price changes both the contribution and the volume required.
Operating break-even is different from cash availability. Payments, inventory commitments and debt principal can require cash before your customers pay. Use a cash forecast alongside this single-product model.
Define whether owner compensation, financing costs, taxes and depreciation belong in the costs you enter. Several products require a stated sales mix; this tool does not model that mix or changing capacity costs.
Read the break-even guide