Skip to main content

Break-even calculator

Find how many units you need to sell to cover your costs — from your fixed costs, selling price and variable cost per unit.

Your figures

Total costs that don’t change with sales (per month or per year).

What each unit costs you — materials, packaging, fees.

Add this to see the sales needed to reach a profit, not just break even.

Your result

Break-even point

0 units

 

Contribution per unit
£0
Contribution margin
0%
Break-even units
0
Break-even revenue
£0

An estimate based on a single price and variable cost. Real businesses have multiple products and stepped costs — our management accounts model break-even across your whole range.

Your break-even point is the moment a product or business starts making money — the sales level where revenue finally covers every cost. Enter your fixed costs, your price and what each unit costs to make or buy, and this shows how many you need to sell to get there, in both units and revenue.

How break-even works

Every sale chips away at your fixed costs by its contribution — the price minus what that unit costs you. Once enough sales have covered the fixed costs entirely, every further sale is profit:

Break-even units = Fixed costs ÷ (Price − Variable cost)

The bigger the contribution per unit, the fewer sales you need — which is why even a small price rise can dramatically lower your break-even point.

Where it gets real

This model assumes one product, one price and a steady variable cost. In practice you’ll have a range of products, discounts, and costs that step up as you grow (a bigger unit, another hire).

That’s where a blended break-even across your whole business comes in — one of the things our management accounts work out, so you know the sales target that actually keeps you in profit.

In plain English

The terms, explained

New to this? Here’s what the words on this page actually mean.

Fixed costs
Costs that don’t change with sales — rent, salaries, software, insurance. You pay them whether you sell one unit or a thousand.
Variable cost
The cost tied to each unit — materials, packaging, the wholesale price, payment fees.
Contribution
Selling price minus variable cost — the slice of each sale that’s left to cover your fixed costs and then become profit.
Break-even point
The number of units (or the revenue) at which total contribution exactly covers your fixed costs, so profit is zero.
FAQ

Break-even calculator — your questions answered

How do I calculate the break-even point?
Divide your fixed costs by the contribution per unit (selling price minus variable cost). If your fixed costs are £2,000 and each unit contributes £8, you break even at 250 units. Enter your figures above to see it instantly, in units and in revenue.
What is contribution margin?
Contribution is the selling price minus the variable cost of a unit — the amount each sale contributes towards your fixed costs and profit. As a percentage of the price it’s the contribution margin. The higher it is, the fewer sales you need to break even.
How many sales do I need to hit a profit target?
Add your target profit to your fixed costs, then divide by the contribution per unit. To make £5,000 profit on £2,000 of fixed costs with £8 contribution: (£2,000 + £5,000) ÷ £8 = 875 units. Enter a target above and the calculator works it out.
What if my price is below my variable cost?
Then every sale loses money and you can never break even — each unit deepens the loss. The fix is to raise the price or cut the variable cost so each sale makes a positive contribution. The calculator will flag this for you.
Why does break-even matter?
It tells you the minimum you must sell to avoid a loss, which is essential for pricing, planning and deciding whether a product or business is viable. It’s one of the first numbers we look at with new businesses — and it’s why getting your costs and price right matters so much.
Need a hand with this?

We can do it properly for you

A calculator gives you a number; we give you a plan to pay less. Explore the services and specialists this relates to:

Want the exact figure — and a way to pay less?

Book a free, no-obligation consultation and we’ll show you how much we can save you.