Your estimated break-even point
Contribution margin is price per unit minus variable cost per unit. Break-even units are fixed costs divided by that margin.
Free tool · Canada · Estimate only
Break-Even Calculator
Enter your fixed costs, your price per unit and your variable cost per unit to see how many units you need to sell to cover your costs. This is an estimate only — plain arithmetic on the numbers you enter. It is not advice.
Written November 13, 2026
Costs that stay the same for the period whether you sell one unit or many — rent, insurance and base salaries are common examples.
What a customer pays for one unit, before tax.
The cost that rises by this amount for each unit sold — materials, packaging and per-sale fees are common examples.
How the estimate works
The formula. Contribution margin per unit = price per unit − variable cost per unit. Break-even units = fixed costs ÷ contribution margin per unit, rounded up to the next whole unit. Break-even revenue = break-even units (exact, before rounding) × price per unit. Contribution margin as a share of price = contribution margin per unit ÷ price per unit.
Assumptions printed. The result uses exactly the three numbers you entered, for one period, with no tax and no change in price or costs across the period.
Sources: No external figure is used on this page. Every number in the result comes from the numbers you enter and the formula above.
Next step: read the full step-by-step guide: Incorporating a Business in Canada Checklist