About this calculator
Your break-even point is the number of sales at which you've covered all your costs and start making a profit. Below it you're losing money, above it you're making it.
Enter your fixed costs (what you pay regardless of sales), your price per unit and your variable cost per unit. Optionally add a profit target and the number of units you expect to sell to see how much room for error you have.
Worked examples
Real numbers, worked out by the same calculator. Press “Use these numbers” to try one above.
£10,000 fixed costs, £50 price, £30 cost per unit
- Break-even units
- 500
- Revenue needed
- £25,000.00
- Profit per unit sold
- £20.00
- Contribution margin
- 40%
Each unit leaves £20.00 after its own costs. To cover £10,000.00 of fixed costs you need to sell 500 units (£25,000.00 of sales).
The same, aiming for £2,000 profit
- Units to reach your profit target
- 600
- Revenue needed
- £30,000.00
- Profit per unit sold
- £20.00
- Contribution margin
- 40%
Each unit leaves £20.00 after its own costs. To cover £10,000.00 of fixed costs and earn £2,000.00 you need to sell 600 units (£30,000.00 of sales).
A cafe: £3,000 costs, £3.50 price, £0.90 cost per cup
- Break-even units
- 1,154
- Revenue needed
- £4,039.00
- Profit per unit sold
- £2.60
- Contribution margin
- 74.29%
Each unit leaves £2.60 after its own costs. To cover £3,000.00 of fixed costs you need to sell 1,154 units (£4,039.00 of sales).
How the calculation works
Each sale contributes your price minus its variable cost towards your fixed costs. This is the contribution per unit: £50 − £30 = £20.
Break-even units = fixed costs ÷ contribution per unit. £10,000 ÷ £20 = 500 units. Because you can't sell part of a unit, the answer is rounded up.
Break-even revenue = break-even units × price = 500 × £50 = £25,000.
To aim for a profit, add it to the fixed costs before dividing: (£10,000 + £2,000) ÷ £20 = 600 units.
Fixed or variable?
Fixed costs stay the same however much you sell in the period: rent, salaries, insurance, subscriptions. Variable costs rise with each sale: materials, packaging, postage, payment fees, sales commission.
Some costs are in between (a phone bill with a usage charge, for example). Put the steady part in fixed costs and the per-sale part in variable costs.
What break-even can't tell you
The calculation assumes your price and per-unit cost stay constant and that you sell everything you make. Real businesses discount, waste stock and have costs that step up as they grow. Use the result to test ideas, such as what happens if you raise the price by £2, rather than as a forecast. The margin of safety figure shows how far sales could fall below your expectation before you start losing money.
Frequently asked questions
What is the break-even point?
It's the sales volume at which total revenue equals total costs, so profit is zero. Every sale after it adds profit.
How do I calculate break-even units?
Divide your fixed costs by the profit each unit contributes (price minus variable cost). £10,000 ÷ (£50 − £30) = 500 units.
What if my price is lower than my variable cost?
You lose money on every sale, so you can never break even by selling more. You need to raise the price or reduce the cost per unit.
What is margin of safety?
It's how far sales can fall below your expected level before you hit break-even, shown as a percentage. If you expect to sell 800 units and break even at 500, your margin of safety is 37.5%.
Should I include my own wages in fixed costs?
Yes, if you want the result to show when the business supports you. Leaving them out shows when the business covers its own costs.
Formulas tested against hand-worked answers. Last reviewed 29 September 2026. These calculators do arithmetic only; they are not financial, tax or legal advice.