How to compute break-even units

1. Enter fixed costs

   "Fixed costs" is the period's total cost that does NOT scale with units sold — rent, salaries, software, baseline marketing. Use the period (monthly / quarterly / yearly) consistently across all fields.

2. Price per unit

   "Price / unit" is the average revenue per unit sold (after discounts, before taxes). For SaaS, this is ARPU; for physical goods, it's the typical sale price.

3. Variable cost per unit

   "Variable cost / unit" is everything that scales 1:1 with units — COGS, payment processing fees, shipping, per-unit royalties. Must be less than price; otherwise contribution margin ≤ 0 and the tool errors out.

4. Press Run

   Result returns breakEvenUnits = ceil(fixedCosts / (price − variableCost)). The ceiling means "the first whole unit that covers fixed costs" — fractional units round up because you can't ship half a product.