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Primary formula: launch units = ceil((launch cost + fixed costs + target profit) / unit contribution)

Educational only: Business decision support, not accounting, tax or legal advice.

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Update policy: Reviewed when formulas or official dependencies change.

Scope: Market-neutral small-business planning using your own assumptions.

What this planner helps you decide

Best for

Product businesses setting a launch-cost recovery threshold.

Outputs

Unit contribution, recovery target, launch units and revenue.

Start here

Separate one-off launch cost from ongoing period fixed costs.

Use a different tool when: Do not use this to recover an incremental fixed cost; use Fixed Cost Recovery Planner for that decision. Use this tool to set a new-product launch recovery threshold.

Profit & break-even

New Product Launch Break-even: unit contribution

Unit contribution, recovery target, launch units and revenue.

Amounts use the same currency as your inputs. No currency conversion is performed.

New Product Launch Break-even

Find the launch volume needed to recover setup, period fixed costs and a target profit.

Your numbers stay in this browser

currency units

One-off development and launch cost. Use one consistent ex-tax monetary basis.

currency units

Ongoing fixed cost for the launch period. Use one consistent ex-tax monetary basis.

currency units

Planned ex-tax selling price. Use one consistent ex-tax monetary basis.

currency units

Avoidable cost per unit. Use one consistent ex-tax monetary basis.

currency units

Profit sought after launch-cost recovery. Use one consistent ex-tax monetary basis.

Monthly throughput used to estimate recovery time.

Decision result

Each output is bound to its own registered engine formula step.

PDF and CSV exports stay on this device. Clean page links contain no inputs.
Launch break-even units
1,231 units
Contribution Per Unit Ex Tax
65.00
Recovery Target Ex Tax
80,000.00
Launch Break Even Revenue Ex Tax
147,720.00
Launch Recovery Months
6.2 months

Scenario comparison

Each row names the assumption axis changed from the baseline.

ScenarioResultDifference
Current scenario1,231 unitsBaseline
Lower Target profit1,224 units-7 units
Higher Target profit1,239 units8 units

Save these results, change an input, then compare the updated figures with this baseline.

The baseline is temporary in this tab and is not added to shared scenario links or generated reports.

Calculation details

View calculation detailsView the formulas and inputs used for these results.

Launch break-even units

Launch Break Even Unitsceil(recovery target / contribution per unit)1,231 whole units
Result1,231 units

Reports units for the entered planning period using the declared ex-tax revenue, cost and capacity basis. The engine retains full precision; only presentation is rounded.

New Product Launch Break-even Planner formulas โ†’
Inputs used by these formula steps
Launch Break Even UnitsLaunch Cost Ex Tax
50,000
Launch Break Even UnitsPeriod Fixed Costs Ex Tax
20,000
Launch Break Even UnitsUnit Price Ex Tax
120
Launch Break Even UnitsUnit Variable Cost Ex Tax
55
Launch Break Even UnitsTarget Profit Ex Tax
10,000
Launch Break Even UnitsExpected Monthly Units
200

Contribution Per Unit Ex Tax

Contribution Per Unit Ex Taxunit price โˆ’ unit variable cost65.00
Result65.00

Reports money for the entered planning period using the declared ex-tax revenue, cost and capacity basis. The engine retains full precision; only presentation is rounded.

New Product Launch Break-even Planner formulas โ†’
Inputs used by these formula steps
Contribution Per Unit Ex TaxLaunch Cost Ex Tax
50,000
Contribution Per Unit Ex TaxPeriod Fixed Costs Ex Tax
20,000
Contribution Per Unit Ex TaxUnit Price Ex Tax
120
Contribution Per Unit Ex TaxUnit Variable Cost Ex Tax
55
Contribution Per Unit Ex TaxTarget Profit Ex Tax
10,000
Contribution Per Unit Ex TaxExpected Monthly Units
200

Recovery Target Ex Tax

Recovery Target Ex Taxlaunch cost + period fixed costs + target profit80,000.00
Result80,000.00

Reports money for the entered planning period using the declared ex-tax revenue, cost and capacity basis. The engine retains full precision; only presentation is rounded.

New Product Launch Break-even Planner formulas โ†’
Inputs used by these formula steps
Recovery Target Ex TaxLaunch Cost Ex Tax
50,000
Recovery Target Ex TaxPeriod Fixed Costs Ex Tax
20,000
Recovery Target Ex TaxUnit Price Ex Tax
120
Recovery Target Ex TaxUnit Variable Cost Ex Tax
55
Recovery Target Ex TaxTarget Profit Ex Tax
10,000
Recovery Target Ex TaxExpected Monthly Units
200

Launch Break Even Revenue Ex Tax

Launch Break Even Revenue Ex Taxlaunch units ร— unit price147,720.00
Result147,720.00

Reports money for the entered planning period using the declared ex-tax revenue, cost and capacity basis. The engine retains full precision; only presentation is rounded.

New Product Launch Break-even Planner formulas โ†’
Inputs used by these formula steps
Launch Break Even Revenue Ex TaxLaunch Cost Ex Tax
50,000
Launch Break Even Revenue Ex TaxPeriod Fixed Costs Ex Tax
20,000
Launch Break Even Revenue Ex TaxUnit Price Ex Tax
120
Launch Break Even Revenue Ex TaxUnit Variable Cost Ex Tax
55
Launch Break Even Revenue Ex TaxTarget Profit Ex Tax
10,000
Launch Break Even Revenue Ex TaxExpected Monthly Units
200

Launch Recovery Months

Launch Recovery Monthslaunch break-even units / expected monthly units6.16 months
Result6.2 months

Reports months for the entered planning period using the declared ex-tax revenue, cost and capacity basis. The engine retains full precision; only presentation is rounded.

New Product Launch Break-even Planner formulas โ†’
Inputs used by these formula steps
Launch Recovery MonthsLaunch Cost Ex Tax
50,000
Launch Recovery MonthsPeriod Fixed Costs Ex Tax
20,000
Launch Recovery MonthsUnit Price Ex Tax
120
Launch Recovery MonthsUnit Variable Cost Ex Tax
55
Launch Recovery MonthsTarget Profit Ex Tax
10,000
Launch Recovery MonthsExpected Monthly Units
200

Inputs used

Launch cost
50,000.00
Period fixed costs
20,000.00
Unit price
120.00
Unit variable cost
55.00
Target profit
10,000.00
Expected monthly units
200
Open this calculator with preset values

This calculator supports documented, shareable scenario URLs. Compatible assistants and applications can construct links using the parameters below.

Scenario links contain only allowlisted numeric and closed-choice inputs shown in the URL; Margin101 excludes free text and identifying fields. Anyone you share the URL with can read those numbers, so do not include private or identifying data.

Example: https://margin101.com/tools/new-product-launch-break-even/?sv=1&expectedMonthlyUnits=200&launchCostExTax=50000&periodFixedCostsExTax=20000&targetProfitExTax=10000&unitPriceExTax=120&unitVariableCostExTax=55

ParameterMeaningUnitAllowed valuesPresenceDefault
expectedMonthlyUnitsMonthly throughput used to estimate recovery time.units/month0 to 100000000Required200
launchCostExTaxOne-off development and launch cost. Use one consistent ex-tax monetary basis.currency units/planning period, ex tax0 to 100000000Required50000
periodFixedCostsExTaxOngoing fixed cost for the launch period. Use one consistent ex-tax monetary basis.currency units/planning period, ex tax0 to 100000000Required20000
targetProfitExTaxProfit sought after launch-cost recovery. Use one consistent ex-tax monetary basis.currency units/planning period, ex tax0 to 100000000Required10000
unitPriceExTaxPlanned ex-tax selling price. Use one consistent ex-tax monetary basis.currency units/unit, ex tax0 to 100000000Required120
unitVariableCostExTaxAvoidable cost per unit. Use one consistent ex-tax monetary basis.currency units/unit, ex tax0 to 100000000Required55

New Product Launch Break-even: unit contribution

Launch break-even units covers launch cost, period fixed cost and the entered target profit at the planned unit contribution.

Formula summary

Primary formula
launch units = ceil((launch cost + fixed costs + target profit) / unit contribution)

Read the full methodology

Data used here

  • The estimate uses your inputs and the general business formula documented in the methodology.

Decision checks

Act on the result

Use launch break-even units and recovery months to set the go/no-go sales threshold for the product launch.

Stress-test the decision

Retest expected monthly units as whole units per month and unit variable cost in currency units per unit, ex tax.

When this estimate can be misleading

  • Results depend on complete, consistently classified inputs.
  • Demand, timing, quality and strategic fit remain separate decisions.
  • This is educational business decision support, not accounting, tax, legal or financial advice.
  • Launch break-even units covers launch cost, period fixed cost and the entered target profit at the planned unit contribution.

Educational estimate, not advice. See all assumptions & limitations โ†’

Guides to interpret the decision and its assumptions.

Frequently asked questions

How do I set a new-product launch recovery threshold?

Use launch break-even units and recovery months to set the go/no-go sales threshold for the product launch.

Which planning assumptions should I stress-test?

Compare a plausible alternative scenario and verify the decision-critical assumption that changes the plan most.