Figurely

Break-Even Point Calculator

Costs that don't change with volume over the period: rent, salaries, software, insurance.

What the customer pays for one unit (excl. VAT).

Cost that occurs per unit sold: materials, packaging, payment fees, shipping.

Try a scenario:
— Units to break even
— Revenue to break even
Contribution per unit — Price minus variable cost — what each sale contributes to fixed costs.
Contribution margin — Share of each sale price left after variable cost.

Enable JavaScript to calculate instantly. The full method is explained below, so the page is useful either way.

The break-even point is the moment a product or business stops losing money and starts covering its costs. Below it, every day costs you money; above it, every sale is contributing to profit. Knowing the exact number — in units and in revenue — turns vague anxiety about pricing into a concrete target you can plan around.

This calculator uses the contribution-margin method, the same approach taught in management accounting. You enter your fixed costs for a period, your selling price, and the variable cost of producing one unit. It returns the contribution each unit makes towards fixed costs, the number of units you must sell to break even, and the revenue that represents. Prices are treated as ex-VAT, and the method is set out in full below with a worked example so you can verify it.

How this calculator works

Two formulas do all the work:

Contribution per unit = selling price − variable cost per unit. This is the slice of every sale left over after the costs that scale with volume.

Break-even units = total fixed costs ÷ contribution per unit. Each unit chips away at fixed costs by its contribution; divide and you get how many units clear them entirely. Break-even revenue is simply that unit figure × the selling price. If the contribution per unit is zero or negative, there is no break-even point at any volume — selling more loses more — and the calculator says so explicitly instead of returning a misleading number.

Worked example

Suppose fixed costs of £5,000 for the quarter, a selling price of £25, and a variable cost of £10 per unit. Contribution per unit = £25 − £10 = £15. Break-even units = £5,000 ÷ £15 = 334 units (always rounded up — 333 would still be fractionally short). Break-even revenue = 334 × £25 = £8,350. So you need 334 sales in the quarter before the business is in profit; sale 335 onward each adds £15 of profit.

Assumptions & limits

  • Prices are treated as excluding VAT. If you sell VAT-inclusive, enter the ex-VAT price.
  • A single average product is assumed. For a mixed range, run it per product or use a weighted average contribution.
  • Costs are assumed linear (fixed stay fixed across the relevant range; variable scale per unit). Step changes in capacity aren't modelled.

Frequently asked questions

What's the difference between break-even in units and in revenue?
Units tells you how many sales you need; revenue tells you the turnover that represents. Revenue is just break-even units multiplied by your selling price — useful when you think in turnover targets rather than unit counts.
Why is the unit figure rounded up?
Selling a fractional unit isn't possible, and the exact figure is usually not a whole number. Rounding down would leave you marginally short of covering fixed costs, so the honest answer is always the next whole unit.
What if my contribution per unit is negative?
Then every sale loses money on top of fixed costs and there is no break-even volume — the fix is pricing or variable cost, not selling more. The calculator flags this rather than returning a nonsensical number.
Do I include my own salary in fixed costs?
If you need to pay yourself to keep the business running, treating it as a fixed cost gives a more honest break-even. Many owners run a version with and without it to see both floors.