Product Break-even Sales

When to use it

For one product over a fixed period, estimate how many whole units must sell to cover the costs you list. The simulated USD example includes a fee charged as a percentage of each item’s selling price. It is not a multi-product forecast or a cash-flow plan.

Inputs

USD

Calculation method

Unit fee = price × fee rate. Unit contribution = price − other unit variable costs − fee. Divide period fixed costs by positive contribution and round upward to whole units. Sales = required units × price. Remaining balance = required units × unit contribution − fixed costs. At $40 per item, $22 other unit costs, a 3% fee and $1,500 fixed costs, 90 units leave $12; 89 units leave −$4.80.

40 [Realized price per item] × 3 [Fee on selling price]% → Fee per item

Realized price per item - 22 [Other variable costs per item] - Fee per item → Contribution per item

ceil(1,500 [Fixed costs for the period]/Contribution per item) → Minimum whole units

Minimum whole units × Realized price per item → Sales at that volume

Minimum whole units × Contribution per item - Fixed costs for the period → Balance after listed costs

Change one input

Change only the selling price from $40 to $36. The percentage fee also falls, from $1.20 to $1.08. Required sales rise from 90 to 117 units. Keeping the old dollar fee fixed would give a different, incorrect model.

Results are displayed to at most two decimal places; later formulas use unrounded values.

Scope and limits

• One product and one period; contribution per unit must be positive.
• Other unit costs exclude the percentage fee and fixed costs.
• The balance covers listed costs only; it is not net profit.

Price must be positive, costs nonnegative and the fee rate at least 0% and below 100%. Use the selling price after discounts and excluding sales tax. The fee must use that same base. Include other per-unit selling and fulfilment costs in the unit-cost input, without counting them again as fixed costs. Tiered fees, minimum charges, returns, unsold inventory payments, mixed products and capacity changes are outside scope. Check whether the required volume can actually be sold.

Download and import into Calvance to edit the numbers. The canvas does not reject every invalid input; check the stated ranges.

Common questions

Why is the balance above zero at break-even volume?

Whole items cannot be split. Rounding up gives the first whole-unit volume that covers listed costs; the previous unit must still fall short.

What if contribution is zero or negative?

The formula cannot give a useful threshold. With positive contribution and zero fixed costs, the threshold is zero units.

References

The SBA single-product formula uses fixed costs divided by price minus unit variable costs. Here the percentage fee is explicitly part of variable costs.

For class enrollment use workshop break-even; for cash needed before opening use shop opening budget.

How to import your template

1. Save the file. Choose Download template and save the .calvx file to Files on your iPhone or iPad. From a computer, you can send it to your device with AirDrop.
2. Open Import. In All Canvases in Calvance, tap the add button to open the template screen, then choose Import.
3. Choose the file. Select the saved .calvx file to create your own canvas. Importing uses one canvas from your allowance.
4. Edit and check. Check the results against the worked example, then add your numbers. Duplicate the canvas to keep different versions.

Download .calvx file