Break-Even Calculator for Several Products (Sales Mix)
The number of units to sell to cover fixed costs when you sell up to three products in a fixed proportion, using the average contribution of the mix.
Results
What this tool does
With one product break-even is fixed costs divided by its contribution per unit; with several, the answer depends on the mix, because a unit of a high-margin product helps more than a unit of a low-margin one. This tool weights each product's contribution (price minus variable cost) by its share of the units sold, divides the fixed costs by that average, and splits the result back by product. The warning is that break-even moves whenever the mix moves: sell more of the cheap, low-margin product than planned and you need more units, and more sales, to reach the same point.
Formula
average contribution = Σ (share × (price − variable cost)) · break-even units = fixed costs ÷ average contribution, split by the mix
Variables
| Symbol | Meaning | Unit |
|---|---|---|
p1 | Product 1: selling price | — |
v1 | Product 1: variable cost | — |
s1 | Product 1: share of units sold | % |
p2 | Product 2: selling price | — |
v2 | Product 2: variable cost | — |
s2 | Product 2: share of units sold | % |
p3 | Product 3: selling price | — |
v3 | Product 3: variable cost | — |
s3 | Product 3: share of units sold | % |
fx | Fixed costs for the period | — |
BT | Break-even: total units to sell | — |
WC | Average contribution per unit sold (weighted by the mix) | — |
B1 | Of which product 1 | — |
B2 | Of which product 2 | — |
B3 | Of which product 3 | — |
BR | Break-even sales revenue | — |
Worked example
- Product 1: selling price30
- Product 1: variable cost18
- Product 1: share of units sold50 %
- Product 2: selling price55
- Product 2: variable cost40
- Product 2: share of units sold30 %
- Product 3: selling price90
- Product 3: variable cost50
- Product 3: share of units sold20 %
- Fixed costs for the period60,000
- Break-even: total units to sell3243
- Average contribution per unit sold (weighted by the mix)18.50
- Of which product 11622
- Of which product 2973
- Of which product 3649
- Break-even sales revenue160,541
Limitations
- The result is an estimate based only on the values you type. Real situations often include factors this calculator does not know about.
- The tool works with whatever currency you use for the inputs; it does not convert between currencies.