Break-Even Point Calculator

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.

What do I need to enter?

• Period — per week, month, quarter or year. It labels the results only and never changes a figure.
• Fixed costs — costs that stay broadly the same whatever you sell, for the same period. Zero or more.
• Selling price per unit — what one item, job or booking earns. It must be above zero.
• Variable cost per unit — costs that rise with each sale. Zero or more.
• Expected sales volume — optional, up to 1,000,000,000 units. Zero skips the profit-or-loss check.

What do the results show?

• Break-even point — the main figure: the whole units you must sell in the period to cover your costs.
• Contribution per unit and Contribution margin ratio — what each sale adds toward fixed costs, in money and as a percentage of the price.
• Break-even units (exact) — the unrounded unit count, to two decimals.
• Break-even revenue and Practical revenue target — the exact revenue needed, and the revenue at the whole-unit target.
• Expected profit or loss and Margin of safety — how your expected sales compare with break-even. Shown as dashes until you enter expected sales.
• Summary tab — every figure listed, with the full expected-sales analysis when you enter a volume.

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.

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.

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