HOW IT IS CALCULATED
Estimate how many units cover fixed costs
Divide fixed costs by the contribution generated by each unit.
Instant resultClear formulaRuns locally
01Values
02fixed costs ÷ (price − variable cost)
03Result
10000 ÷ (50 − 30) = 500 units
Only contribution per unit covers fixed costs
Revenue per unit is not enough by itself because variable cost must be paid first.
02
In short
What logic does the calculator use?
fixed costs ÷ (price − variable cost)
Example?
10000 ÷ (50 − 30) = 500 units