Rent, salaries, insurance, software — costs that stay the same however much you sell. Use one period, e.g. per month.
Costs that come with each sale: materials, packaging, shipping, card fees, commissions.
For the same period as fixed costs. Leave at 0 for the pure break-even point.
Break-even units800
Break-even revenue$20,000.00
Contribution margin per unit$15.00
Contribution margin ratio60%

Break-even = fixed costs ÷ (price − variable cost) = 12,000 ÷ 15 = 800 units.

Profit or loss at different sales volumes
Units soldRevenueTotal costsProfit / loss
0$0$12,000-$12,000
400$10,000$16,000-$6,000
600$15,000$18,000-$3,000
800$20,000$20,000$0
1,000$25,000$22,000$3,000
1,200$30,000$24,000$6,000
1,600$40,000$28,000$12,000

Break-Even Calculator · free calculator by CalcWorthy