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Multi-Product Break-Even Calculator

Enter your fixed costs and each product's price, variable cost, and mix ratio.

How it is calculated

Each product's contribution margin is CM = price − variable cost. The two margins are blended by the sales mix: WACM = (CMA × mixA + CMB × mixB) / (mixA + mixB). Break-even units are fixed costs / WACM, then split by the mix: unitsA = total × mixA / (mixA + mixB), and the same for B. Break-even revenue is unitsA × priceA + unitsB × priceB.

The mix fields are ratios, so 3 and 1 mean the same as 75 and 25; they do not need to add up to 100. Units are not rounded up to whole numbers, so round up yourself before planning. The tool gives no result if the total mix is zero or negative, or if the blended margin is zero or negative, because no volume could then cover fixed costs. Money is shown in dollars.

Worked example

Fixed costs are 12,000. Product A sells at 50 with a variable cost of 30 (margin 20), product B at 80 with a variable cost of 50 (margin 30), and the mix is 3 units of A for every 1 of B. WACM = (20 × 3 + 30 × 1) / 4 = 90 / 4 = $22.50. Break-even units = 12,000 / 22.50 = 533.33. Of these, 3/4 are A, 400 units, and 1/4 are B, 133.33 units. Revenue at break-even is 400 × 50 + 133.33 × 80 = $30,666.67.

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Common mistakes

  • Entering the margin in the variable cost field, or the margin instead of the price. The tool subtracts variable cost from the price itself.
  • Treating the mix as the number of units you plan to sell. It is a ratio; the total volume is what the tool solves for.
  • Putting monthly fixed costs against annual prices or volumes. Fixed costs and the period of the result must cover the same time span.
  • Expecting the answer to hold when the mix changes. Selling more of the lower-margin product pushes break-even units up.
  • Entering a variable cost above the price for one product and expecting the other to carry it. That is allowed, but if the blended margin falls to zero or below, no result is shown.

Sources

About this calculator

When a business sells more than one product, break-even can't be found from a single contribution margin — it uses the weighted average contribution margin instead: each product's (price − variable cost) is weighted by its share of the sales mix, summed, and then fixed costs are divided by that blended figure to get total break-even units, which are then split back out by the mix ratio to get each product's break-even quantity and the combined break-even revenue.

Because the mix ratio directly changes the blended margin, break-even volume shifts if the sales mix shifts even when nothing else about pricing or cost changes — a business selling more of its lower-margin product needs higher total volume to break even. Small business owners, financial analysts, and managers setting sales targets use multi-product break-even analysis to see how many total units — and of each product — are needed to cover fixed costs under a given product mix.

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Comments (1)

  • Editorial team

    The split into units of A and B only holds if you really sell in the ratio you typed. Try shifting the mix: with the default prices, a 1 to 1 mix gives a blended margin of 23.00 and 2,173.91 units, against 2,564.10 units at 3 to 1, so the product you push matters as much as the fixed cost. Round the units up yourself. What mix did your sales actually follow last period?

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