Break-Even Calculator
The break-even point is where your revenue covers all your costs — fixed and variable — and you start making a profit.
Enter your fixed costs, the variable cost per unit and your selling price to find the number of units and revenue needed.
How the calculation works
We believe numbers should be transparent. Here is the formula behind this calculator.
Worked example
Worked example: £12,000 fixed, £20 variable, £50 price
Important assumptions
- Assumes fixed costs do not change with sales volume.
- Assumes a single product and a constant price and variable cost.
- Break-even is before tax and other one-off costs.
Frequently asked questions
What is the difference between fixed and variable costs?
Fixed costs stay the same regardless of sales (rent, salaries). Variable costs change with each unit sold (materials, delivery). The break-even point needs both.
What if the price is below the variable cost?
You can never break even — every sale loses money. The calculator shows "Never" because contribution per unit is zero or negative.
Why is break-even useful?
It tells you the minimum sales you need before you start making money, which is essential for pricing and planning. It also shows how many units you must sell to cover overheads.
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Read the guideThese calculations are estimates for guidance only and are not professional financial, tax or legal advice. UK rates and rules change, so always verify important figures with official GOV.UK / HMRC information or speak to a qualified professional. See our full disclaimer.