What is the break-even point?

It is the number of units (or amount of revenue) at which total sales exactly cover total costs — no profit, no loss. Each unit sold beyond it contributes to profit.

How do I calculate break-even units?

Divide your fixed costs by the contribution margin per unit (price minus variable cost). For example £12,000 of fixed costs ÷ £25 contribution = 480 units.

What is contribution margin?

It is the selling price minus the variable cost per unit — the amount each sale contributes towards covering fixed costs and then profit. The margin percentage is that figure divided by the price.

How do I find the units needed for a target profit?

Add your target profit to fixed costs, then divide by the contribution margin: (fixed + target) ÷ contribution. The calculator does this when you enter a target profit.

What is break-even revenue?

It is the break-even units multiplied by the selling price — the sales income at which you exactly cover all costs.

Why does it need a positive contribution margin?

If the variable cost per unit is equal to or higher than the price, each sale loses money and you can never break even. The calculator requires a positive contribution margin to produce a result.

Is my pricing data kept private?

Yes. The calculator runs entirely in your browser. Your costs, prices and targets are never uploaded or stored.

Break-Even Calculator

Break-even point calculator

Work out exactly how many units you need to sell before you start making money. Enter your fixed costs, the price per unit and the variable cost per unit, and the calculator returns your break-even units, break-even revenue and contribution margin — plus the units needed to hit an optional target profit.

How it works

The core figure is the contribution margin per unit:

contribution = price − variable cost

Then:

break-even units = fixed costs ÷ contribution break-even revenue = break-even units × price units for target profit = (fixed costs + target) ÷ contribution

The margin percentage is contribution ÷ price × 100.

Example

Fixed costs £12,000, price £40, variable cost £15:

Contribution = 40 − 15 = £25 (62.5% margin)
Break-even units = 12,000 ÷ 25 = 480 units
Break-even revenue = 480 × 40 = £19,200
For a £5,000 target profit: (12,000 + 5,000) ÷ 25 = 680 units

Metric	Value
Contribution margin	£25 (62.5%)
Break-even units	480
Break-even revenue	£19,200

All maths happens locally in your browser, so your numbers stay private.