PD PricingDeck

Calculator

Break-even Price Calculator

Calculate the minimum price per unit needed to cover variable cost, absorb fixed overhead, and optionally leave a profit buffer at the volume you expect to sell.

  • Work backwards from fixed-cost reality
  • Turn target volume into a price floor
  • Include a profit buffer when needed

Calculate break-even price

Enter fixed costs, variable cost per unit, expected units sold, and an optional target profit. The calculator shows what price per unit is needed so the model covers itself at that volume.

Three price-floor scenarios to test quickly.

Formula

How to calculate break-even price

Break-even price per unit = Variable cost per unit + (Fixed costs + Target profit) / Expected units sold

If fixed costs are $12,000, variable cost is $14, and expected units are 480, the overhead load per unit is $25. Add that to the $14 variable cost and the break-even price becomes $39 per unit.

Where it helps

  • Working out the minimum viable price before launch.
  • Understanding how low volume forces a higher price floor.
  • Testing whether a target profit still fits the market.