Break-Even Point Calculator
Enter your fixed costs, price per unit, and variable cost per unit to find how many units — and how much revenue — it takes to break even.
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How to calculate your break-even point
- Enter your fixed costs for the period, such as rent and salaries.
- Enter the price per unit and the variable cost per unit.
- Read how many units, and how much revenue, you need to break even; add a target profit to see what that takes.
How it's calculated
Contribution margin is price − variable cost — what each unit sold actually contributes toward covering fixed costs, after its own direct cost. Break-even units is fixed costs ÷ contribution margin: sell fewer than that and you're operating at a loss, sell more and every additional unit is profit. Adding a target profit finds units for (fixed costs + target profit) ÷ contribution margin instead. This is a simplified model — it assumes price and variable cost stay constant regardless of volume. Nothing entered here is sent to a server.
Questions about breaking even
How is the break-even point calculated?
Fixed costs divided by the contribution per unit (price minus variable cost). With £10,000 fixed costs, a £25 price and £15 variable cost, you need 1,000 units.
What is contribution margin?
What each sale leaves over after its own direct cost, which goes towards fixed costs and then profit.
What are fixed and variable costs?
Fixed costs stay the same whatever you sell, like rent. Variable costs rise with each unit, like materials and delivery.
How can I break even sooner?
Raise the price, cut the cost per unit or reduce fixed costs. Try each here to see which makes the biggest difference.