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Break-Even Point Calculator

Enter your fixed costs, selling price and variable cost per unit to find the break-even point in units and revenue, plus a profit or loss check against your expected sales.

Costs and pricing

Labels the results only — it does not change any figure. Enter fixed costs for the same period.
Costs that stay broadly the same regardless of sales, such as rent, salaried staff, insurance, subscriptions and business rates.
The amount received from the customer for one item, job, booking, subscription, hour or unit.
Costs that increase with each sale, such as materials, direct labour, packaging, delivery, commissions and payment fees.
units
Optional. Enter expected sales to see whether you are above or below break-even. Leave at zero to skip that check.
Break-even point
167 units per month
Contribution per unit
£60.00
Contribution margin ratio
60.00%
Break-even units (exact)
166.67
Break-even revenue
£16,666.67
Practical revenue target
£16,700.00
Expected profit per month
£2,000.00
Margin of safety
16.67%
Fixed costs
£10,000.00
Selling price per unit
£100.00
Variable cost per unit
£40.00
Contribution margin per unit
£60.00
Contribution margin ratio
60.00%
Break-even units (exact)
166.67
Whole units required
167
Break-even revenue (exact)
£16,666.67
Revenue at whole-unit target
£16,700.00
Expected sales analysis
Expected units sold
200
Expected revenue
£20,000.00
Expected variable costs
£8,000.00
Fixed costs
£10,000.00
Expected total costs
£18,000.00
Expected profit
£2,000.00
Position
33 units above break-even
Margin of safety
16.67%

How to use this calculator

  1. Choose the period you want the answer in. It labels the results only — enter your fixed costs for the same period.
  2. Pick your currency at the top of the calculator panel. It sets the formatting only and does not convert the figures.
  3. Enter fixed costs — the costs that stay broadly the same regardless of sales, such as rent, salaried staff and insurance.
  4. Enter the selling price per unit and the variable cost per unit — the cost that rises with each sale, such as materials, packaging and payment fees.
  5. Optionally enter an expected sales volume to see whether that level of sales makes a profit or a loss, and by how far it clears break-even.

The results update as you type. The headline figure is the whole-unit sales target for the period; the key metrics give the contribution margin, the exact break-even units and the revenue needed; the summary tab lists every figure and, when you enter expected sales, the full profit-or-loss analysis.

How break-even is calculated

Each sale first covers its own variable cost. The remaining contribution then pays toward fixed costs. Once fixed costs are fully covered, additional contribution becomes profit.

Contribution margin per unit = Selling price per unit − Variable cost per unit
Contribution margin ratio = Contribution margin per unit ÷ Selling price per unit
Break-even units = Fixed costs ÷ Contribution margin per unit
Break-even revenue = Fixed costs ÷ Contribution margin ratio
Break-even revenue can also be read straight off the units: break-even units × selling price per unit.

Worked example, in GBP: selling at £100 with a £40 variable cost leaves £60 contribution per unit, a contribution margin ratio of 60%. With £10,000 of fixed costs, £10,000 ÷ £60 = 166.67 units, or £16,666.67 of revenue. If whole units are required, the business must sell 167 units — £16,700.00 of revenue. Selling 200 units gives £20,000 revenue against £18,000 total costs, an expected profit of £2,000 and a margin of safety of 16.67%.

When break-even cannot be reached

Break-even only exists when each sale contributes something toward fixed costs. When it does not, selling more volume cannot help — the price or the variable cost has to change.

How the calculator responds to each pricing situation
SituationWhat the calculator shows
Variable cost per unit is below the selling priceBreak-even is calculated normally. Each sale contributes something toward fixed costs.
Variable cost per unit equals the selling priceNo break-even. Each sale makes no contribution toward fixed costs, so they are never covered.
Variable cost per unit is above the selling priceNo break-even. Every sale increases the loss, so selling more moves further from covering costs.
Fixed costs are zeroBreak-even is 0 units. With no fixed costs to cover, every sale with a positive contribution is profit.

Important information

Important: this calculator is for general business planning and is not accounting advice. It uses the figures you enter and standard break-even arithmetic; it does not model tax, stepped fixed costs, a changing sales mix or discounts. For a full revenue-to-net-profit breakdown once overheads and tax are in the picture, see the Profit Margin Calculator, or the Markup Calculator to set a price from a target margin.

Frequently asked questions

What is the break-even point?

The break-even point is the level of sales at which total revenue exactly equals total costs. Profit is zero — the business is making neither a profit nor a loss. Below it the business loses money; above it, each additional sale adds its contribution margin to profit.

How do you calculate the break-even point?

First work out the contribution margin per unit: selling price per unit minus variable cost per unit. Then divide fixed costs by that figure. Break-even units = Fixed costs ÷ (Selling price per unit − Variable cost per unit). Break-even revenue = Fixed costs ÷ Contribution margin ratio, where the ratio is contribution margin per unit ÷ selling price per unit.

What is the contribution margin?

Contribution margin per unit is what one sale contributes toward fixed costs once its own variable cost is paid: selling price minus variable cost. The contribution margin ratio expresses the same thing as a percentage of the selling price. At £100 with a £40 variable cost, the contribution margin is £60 per unit, a ratio of 60%.

Why does the calculator round the break-even point up?

Fixed costs ÷ contribution margin rarely lands on a whole number. £10,000 ÷ £60 is 166.67 units. Selling 166 units leaves fixed costs slightly short, so the practical target rounds up to 167 — the first whole unit that covers everything. The calculator shows both the exact figure and the rounded-up target.

What is the margin of safety?

The margin of safety is how far your expected sales sit above the break-even point, as a percentage: (Expected sales − Break-even sales) ÷ Expected sales × 100. Selling 200 units against a 166.67-unit break-even is a margin of safety of 16.67% — sales could fall by that much before the business reaches a loss.

What if the variable cost is the same as or higher than the selling price?

Then break-even cannot be reached. If they are equal, each sale contributes nothing toward fixed costs. If the variable cost is higher, each sale increases the loss. The calculator stops calculating a break-even figure and explains why — the fix is a higher price or a lower variable cost, not more volume.

Does changing the period change the numbers?

No. The period — per week, month, quarter or year — only labels the results. Enter your fixed costs for the same period you want the answer in: monthly fixed costs give a monthly break-even point. The arithmetic is identical whichever period you choose.

Does changing the currency convert my figures?

No. The currency selector changes the formatting only — the symbol, the grouping and, for the yen, the decimal places. The amounts you enter and every calculated result stay exactly as they are. There is no exchange rate involved.

Can I use this for services, subscriptions or hours rather than products?

Yes. A "unit" can be an item, a job, a booking, a subscription, an hour or a kilogram — anything you sell at a price with a variable cost. Expected sales volume accepts decimals for divisible units, and the whole-unit target is shown separately for cases where part of a unit cannot be sold.