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How to calculate Break-even units

The Break-even units formula, with plain worked examples you can check yourself.

Break-even units = F ÷ (P − V)

Worked examples

F = 1000 · P = 15 · V = 10Break-even units = 200
F = 9000 · P = 30 · V = 10Break-even units = 450
F = 2000 · P = 65 · V = 40Break-even units = 80

How to use it

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Check the units before you compare results.
  4. Compare the answer with last period or with a competitor to see if it is good or bad.

This formula belongs to Costs & Break-even.

Related terms

Fixed costsVariable costsCost of goods soldOverheadDepreciationDirect costs

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