METHOD & GUIDANCE
How this calculation works
Enter figures from the same period and on a consistent sales tax-inclusive or sales tax-exclusive basis. Tool IQ recalculates every output immediately; nothing you enter is saved or sent to us.
How to use the result
Translate break-even units into weekly or daily targets, then add the profit required above break-even rather than treating zero profit as the goal.
Worked example
The example has 3,500 of fixed cost and 45 contribution per unit. Rounding up, 78 unit sales are required to cover fixed costs.
Common mistakes
- Classifying a per-sale cost as fixed.
- Using average selling price without considering product mix.
- Ignoring capacity limits at the calculated volume.
Frequently asked questions
Is this calculator free?
Yes. It requires no account and stores no calculation inputs.
Can I use the answer for a formal filing?
No. It is a planning estimate, not accounting, tax, legal or investment advice. Confirm material decisions with a qualified professional.
Should I include sales tax?
Use a consistent basis throughout. Businesses that recover input tax commonly model net figures; consumer-facing prices are often considered gross.
Continue the decision
- Profit Margin Calculator — See profit, margin and markup from one sale.
- ROI Calculator — Compare return, profit and payback at a glance.
Method reviewed 26 July 2026. Figures are illustrative and calculated locally in your browser.