The break-even point is the number of units you need to sell so that money left after variable costs covers your fixed costs. Sell more and the simple model shows profit; sell fewer and it shows a loss.
Core idea
Break-even units = fixed costs ÷ (price − variable cost)
Sample
Fixed $10,000.00 · price $50.00 · variable $30.00 → about 500 units. Open sample
Related
Frequently asked questions
What is a break-even point?
The sales volume where total contribution margin equals fixed costs—profit is zero under the simple model.
Sample break-even for $10,000 fixed, $50 price, $30 variable?
About 500 units.
Sources linked above include U.S. government materials (for example CFPB, FDIC, NCUA, BLS, IRS) where noted. Sample math uses only labeled Nestfigure assumptions—not bank quotes, job offers, or personalized advice. Last reviewed: August 9, 2026.