Finance Tools
Unit Cost Increase Break-Even Yield Calculator
Estimate how many additional units you must produce or sell to break even after a unit cost increase (assuming selling price stays the same).
Estimate how many additional units you must sell to maintain your baseline total profit after a unit cost increase (assuming price stays the same).
Assumed constant for this scenario.
Your baseline unit cost.
Example: 10 means +10%.
Baseline volume.
New unit cost after increase: $8.80
Margin
Profit/unit (before): $4.00
Profit/unit (after): $3.20
Volume needed
Required units: 62,500
Additional units: 12,500
Volume increase: 25.00%
This assumes selling price stays constant and you try to offset lower margin by selling more units.
How it works
- Profit/unit before = price − cost.
- Profit/unit after = price − new cost.
- Total profit before = profit/unit before × current units.
- Required units = total profit before ÷ profit/unit after.
FAQ
Is this true “break-even”?
Here, “break-even yield” means keeping baseline total profit constant by increasing volume. If you want profit = 0, use the break-even price tool instead.
What if demand can’t grow?
Then you likely need price increases, cost reduction, or hedging instead of volume expansion.
How to use this unit cost increase break-even yield calculator
- Enter current selling price per unit and current cost per unit.
- Enter the unit cost increase (% or amount).
- Enter current units sold (baseline volume).
- Review required new volume and additional units needed to break even.
Example
Price is $12/unit, cost is $8/unit, and you sell 50,000 units. Unit cost rises 10% (to $8.80).
- Profit/unit before = 12 − 8 = 4.00
- Profit/unit after = 12 − 8.80 = 3.20
- To keep total profit constant, volume must increase
- Calculator outputs required units and extra units needed
More tools in Finance Tools
- Material Cost Break-Even Shift Calculator
Estimate how a change in material costs shifts your break-even volume and break-even revenue using fixed costs, selling price, and unit costs.
- Price Increase vs Volume Drop Break-Even Calculator
Calculate how much sales volume can drop after a price increase while keeping total gross profit (or contribution profit) the same.
- Required Volume Increase to Offset Cost Inflation Calculator
Calculate how much sales volume must increase to offset higher input costs and maintain the same total profit when prices cannot be raised.
- Input Cost Increase Break-Even Calculator
Calculate the maximum input cost increase a business can absorb before profit falls to zero.