How do you calculate the break-even point?

Break-even units = fixed costs ÷ (price per unit − variable cost per unit). The denominator is the contribution margin — the profit each unit adds toward covering fixed costs. Multiplying break-even units by price gives the break-even revenue.

What is contribution margin?

Contribution margin is the selling price minus the variable cost of one unit. It is the amount each sale contributes toward your fixed costs and, after break-even, toward profit. A higher margin means you break even on fewer sales.

What if my price is below my variable cost?

Then you lose money on every sale and can never break even — the contribution margin is negative. You must raise the price or cut the variable cost before any volume of sales becomes profitable.

Are my figures uploaded?

No. The break-even calculator runs entirely in your browser. Your cost and price figures are processed locally and never sent to a server.

Break-Even Point Calculator

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The Break-Even Point Calculator tells you how many units you must sell to cover all your costs — the moment a product or business stops losing money and starts making it. Enter your fixed costs, selling price and variable cost per unit and it does the analysis instantly in your browser.

The break-even formula

break-even units = fixed costs ÷ (price − variable cost per unit)

The bracket is the contribution margin: the slice of each sale that’s left after the variable cost, available to cover fixed costs. Once enough units sell to cover all fixed costs, every further sale is profit.

Worked example

With £10,000 fixed costs, a £50 price and £20 variable cost per unit:

Contribution margin = £50 − £20 = £30
Break-even units = £10,000 ÷ £30 ≈ 334 units
Break-even revenue = 334 × £50 ≈ £16,700

If price ever drops below variable cost, the margin goes negative and break-even becomes impossible — a clear signal to reprice or cut costs. Everything is calculated locally in your browser.