BREAK EVEN POINT
0 units
Enter your business costs and selling price to calculate.
This calculator gives a simple break-even estimate based on the figures entered.
How to calculate break-even point
Break-even point is calculated by dividing total fixed costs by the profit made per unit sold.
Example: simple product business
If fixed costs are £1,000, a product sells for £25 and costs £10 to make, the profit per unit is £15.
The business would need to sell around 67 units to cover all fixed costs and break even.
What this calculator is for
This break-even calculator helps estimate how many units need to be sold before a business covers its costs.
It can be useful for product businesses, online sellers, shops, side businesses, wholesalers, startups, creators and service providers.
Break-even formula
A simple break-even formula is:
Break-even units = fixed costs ÷ profit per unit
Profit per unit is usually the selling price minus the cost per unit.
Important note
This calculator is for general informational purposes only and does not provide accounting, tax or financial advice. Actual business costs and profitability may vary depending on VAT, taxes, refunds, overheads, discounts and other business expenses.
Frequently Asked Questions
What is break-even point?
Break-even point is the point where total revenue equals total costs, meaning no profit or loss is made.
Why is break-even important?
Break-even analysis helps businesses understand how many sales are needed before becoming profitable.
What are fixed costs?
Fixed costs are business costs that do not usually change with sales volume, such as rent, software subscriptions or insurance.
Does this calculator include VAT?
No. This calculator uses the figures entered and does not automatically include VAT or tax costs.
Can this calculator be used for services?
Yes. Service businesses may use the calculator by treating each service sale as one unit.