Break-even calculator
Enter fixed costs, price and variable cost to find the break-even point.
Break-even calculator
The break-even point is the number of units you must sell so revenue exactly covers costs — no profit, no loss. This calculator finds it from your fixed costs, price per unit and variable cost per unit.
How it’s calculated
units = fixed costs / (price − variable cost)
The denominator is the per-unit contribution margin. For example, £10,000 fixed costs, £50 price and £30 variable cost: margin £20 → 500 units, i.e. £25,000 in revenue.
Vocabulary
- Fixed costs: don’t depend on sales (rent, salaries).
- Variable cost: per unit produced/sold.
- Contribution margin: price − variable cost.
Frequently asked questions
What if price doesn’t exceed the variable cost? There’s no break-even: each sale increases the loss.
Does it work for services? Yes, treating each service as a "unit".