Break-Even Calculator
Break-even point = Fixed Costs ÷ (Selling Price – Variable Cost per Unit). This tells you how many units you must sell to cover all your costs.
How many units do you need to sell to cover your costs? The break-even point is the number of sales where your total revenue exactly equals your total costs — no profit, no loss.
Use this calculator to find your break-even point in units and revenue, and optionally work out how many sales you need to hit a profit target.
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What this calculator does
This calculator estimates the number of units you need to sell (and the revenue required) to cover your fixed costs, based on your selling price and variable cost per unit. It also shows your contribution per unit and can calculate sales targets for a given profit goal.
Who it is for
Business owners, product managers, startup founders, freelancers, and anyone pricing a product or service and wanting to understand the minimum sales volume needed.
How to use it
Enter your total fixed costs for the period, selling price per unit, and variable cost per unit. Optionally add a profit target. Click 'See My Result' for your break-even analysis.
How the calculation works
Contribution per unit = Selling price – Variable cost. Break-even units = Fixed costs ÷ Contribution per unit. Break-even revenue = Break-even units × Selling price. For target profit: Units required = (Fixed costs + Target profit) ÷ Contribution per unit.
Worked example
Fixed costs: £5,000/month. Selling price: £25. Variable cost: £10. Contribution per unit = £25 – £10 = £15. Break-even units = £5,000 ÷ £15 = 334 units. Break-even revenue = 334 × £25 = £8,350. To make £2,000 profit: (5,000 + 2,000) ÷ 15 = 467 units (£11,675).
Assumptions and limitations
- Assumes fixed costs remain constant within the period
- Assumes selling price and variable cost per unit are constant
- Does not account for seasonality, discounts, or volume pricing
- Does not include VAT unless you enter VAT-inclusive prices and costs
- Actual break-even may differ due to mixed products, varying margins, or stepped fixed costs
Frequently asked questions
How do I calculate break-even point?
Break-even units = Fixed costs ÷ Contribution per unit. Contribution per unit = Selling price – Variable cost per unit. For example, with £3,000 fixed costs, £20 price, and £8 variable cost, you need 250 units.
What is contribution per unit?
Contribution per unit is the selling price minus the variable cost per unit. It represents how much each sale contributes toward covering your fixed costs and generating profit.
Why is my break-even point so high?
High break-even points usually result from high fixed costs, a low selling price, or a high variable cost per unit. To reduce it, consider lowering fixed costs, raising your price, or reducing variable costs.
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Related guides
- How to Calculate Your Break-Even Point — Learn how to work out the break-even point for your business: the number of units or revenue needed to cover all your costs.
- How PayPal Fees Affect Your Pricing — Understand how PayPal transaction fees work and how to factor them into your pricing strategy.
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Sources and references
CIMA (Chartered Institute of Management Accountants) break-even analysis, UK business planning resources (https://www.gov.uk/write-business-plan)
Last updated
Last reviewed: 2026-04-12.