Break-Even and Target Profit Calculator
Calculate break-even units, sales revenue and the volume needed for a target profit using fixed costs, unit selling price and variable cost in WaliERP.
Enter the figures you want to check
Calculations run only in your browser. Values are neither saved nor sent to us.
Calculation results
Contribution per unit
SAR
Break-even units
units
Revenue at break-even units
SAR
Units for target profit
units
A conventional break-even point cannot be calculated from these inputs; this model requires positive contribution per unit. Review selling price and variable cost.
How are the results calculated?
Contribution per unit = selling price − variable cost per unit.
Break-even units = fixed costs ÷ contribution per unit, rounded up to a whole unit.
Displayed break-even revenue = rounded-up break-even units × unit selling price.
Units for target profit = (fixed costs + target profit) ÷ contribution per unit, rounded up.
Assumptions and limits
- Use the same period for fixed costs and target profit. The calculation assumes a constant price and variable cost for one consistent unit, without capacity limits or changes in product mix.
- Amounts are before VAT, and the profit target is operating profit based on the costs entered. This educational estimate is not a guaranteed sales or profit forecast.
Understand the idea behind the calculation
Using the tool and understanding your results
How many units cover your period costs? Enter fixed costs, unit selling price and variable unit cost, then add an operating profit target if needed. The calculator shows unit contribution and the sales volume required for break-even and your chosen target.
How do I calculate the break-even point?
Divide fixed costs by selling price minus variable cost per unit. With SAR 10,000 fixed costs, an SAR 100 price and SAR 60 variable cost, contribution is SAR 40 and break-even is 250 units with SAR 25,000 revenue.
How many units do I need for a target profit?
Add target operating profit to fixed costs, then divide by contribution per unit. Using the same costs and an SAR 5,000 target gives 375 units. Round up to whole units and use the same period for fixed costs and the target.
Why is break-even unavailable when price equals variable cost?
If selling price equals or falls below variable cost, each unit leaves no positive contribution to cover fixed costs. This model therefore needs a positive contribution per unit to calculate a conventional break-even point.