Break-Even Calculator

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Break-Even Calculator

Find out exactly how many units you need to sell, and how much revenue you need to bring in, before your business starts turning a profit.

📈 Business Tool
Instant Results
💰 Profit Planning
📱 Mobile Friendly

Calculate Your Break-Even Point

Enter your fixed costs, variable cost per unit, and selling price per unit to see exactly how many units you need to sell, and at what revenue, to cover all your costs.

Cost & Price Details

Enter your business figures to calculate your break-even point

💷 Cost Inputs
£
Rent, salaries, insurance, and other costs that don’t change with sales volume.
£
£
Variable cost is the direct cost of producing one extra unit (materials, packaging, per-unit labour).

Break-Even Results

Units and revenue needed to cover all costs

Sample Break-Even Scenarios

A few common fixed cost, price, and variable cost combinations to help you sanity-check your own numbers.

Fixed Costs Price / Unit Variable Cost / Unit Break-Even Units Break-Even Revenue
£5,000£25£10334£8,350
£10,000£50£20334£16,700
£15,000£100£40250£25,000
£25,000£75£30556£41,700
£50,000£200£80417£83,400
⚠️ Important Note: This calculator assumes price and variable cost per unit stay constant at every volume. In reality, bulk discounts, staged fixed costs, and seasonal pricing can shift your actual break-even point.

Break-Even Calculator FAQ

Everything you need to know about break-even analysis, contribution margin, and cost structure.

The break-even point is the level of sales at which total revenue equals total costs, meaning the business makes neither a profit nor a loss. Selling beyond this point generates profit, while selling below it results in a loss.

Break-even point in units is calculated by dividing total fixed costs by the contribution margin per unit, where the contribution margin is the selling price per unit minus the variable cost per unit. The formula is Fixed Costs ÷ (Price per Unit − Variable Cost per Unit).

Contribution margin is the amount each unit sold contributes toward covering fixed costs after variable costs are paid. A higher contribution margin means fewer units need to be sold to break even, while a low or negative margin means the business may never break even at the current price.

Fixed costs stay the same regardless of how much is produced or sold, such as rent, salaries, or insurance. Variable costs change directly with production volume, such as raw materials, packaging, or per-unit shipping fees.

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