Break-even Revenue from Contribution Ratio
Calculate
Calculate break-even revenue using fixed costs and contribution margin ratio. A fast method for forecasting sales targets.
Use this calculator when you need a fast, reliable answer without opening a spreadsheet. Enter your figures below and press Calculate. PercentNinja shows the key outputs you typically need for pricing decisions, VAT checks, ecommerce payouts or ad reporting.
When to use this
- Checking a price before you publish it on your website or marketplace
- Planning profitability (margin, fees or VAT) before running ads
- Quick sanity-checks for invoices, quotes or campaign reports
Worked examples
Example 1
Question: Fixed costs £5,000, ratio 40%.
- Break-even revenue = 5,000 ÷ 0.40 = £12,500
Example 2
Question: Fixed costs £1,200, ratio 25%.
- Break-even revenue = 1,200 ÷ 0.25 = £4,800
Frequently asked questions
How do you calculate break-even revenue from contribution margin ratio?
Divide fixed costs by the contribution margin ratio expressed as a decimal: break-even revenue = fixed costs ÷ (ratio ÷ 100).
Why must the contribution ratio be between 0 and 100?
The ratio must be a positive percentage below 100% so the divisor is valid and matches a typical contribution margin ratio interpretation.
Is this the same as the break-even revenue from margin % calculator?
It uses the same economic idea: revenue must be large enough that the contribution dollars cover fixed costs. The inputs are fixed costs and your contribution margin ratio as a percent.