Enter your fixed costs, selling price and variable cost per unit to see how many sales you need to break even.
This calculator needs JavaScript to run. The sum is simple: break-even units = fixed costs ÷ (selling price − variable cost per unit), rounded up. For example, £2,000 of fixed costs, a £25 price and a £10 variable cost give 134 sales.
Tap a figure to copy it.
Rounded up to whole units and to the nearest penny. This works out break-even for one product or service. It is not accounting or financial advice.
To calculate the break-even point in units, divide your fixed costs by the selling price minus the variable cost per unit, then round up. With £2,000 of fixed costs, a £25 price and a £10 variable cost, that is £2,000 ÷ £15 = 133.33, so you need 134 sales.
Round up because you cannot sell a part of a unit. In the calculator above, enter your fixed costs, the price and the variable cost per unit.
To calculate break-even revenue, multiply the break-even units by the selling price. For 134 units at £25, that is £3,350.
To aim for a profit, add the profit you want to your fixed costs before dividing. To make £1,000 on top of £2,000 fixed costs at £15 per unit, you need (£2,000 + £1,000) ÷ £15 = 200 sales.
Fixed costs stay the same however much you sell, such as rent, insurance or a software subscription. Variable costs rise with every sale, such as materials, packaging or delivery.
What each sale leaves after its variable cost is the contribution. It goes towards your fixed costs until they are covered, and after that it is profit. At a £25 price and a £10 variable cost, each sale contributes £15, which is 60% of the price.
At a £25 price and a £10 variable cost per unit, this is how many sales it takes to cover different fixed costs.
| Fixed costs | Units | Revenue |
|---|---|---|
| £500.00 | 34 | £850.00 |
| £1,000.00 | 67 | £1,675.00 |
| £2,000.00 | 134 | £3,350.00 |
| £5,000.00 | 334 | £8,350.00 |
| £10,000.00 | 667 | £16,675.00 |
The break-even point is the number of sales at which your income exactly covers your costs, so you make neither a profit nor a loss. Every sale after that adds to your profit.
To calculate the break-even point in units, divide your fixed costs by the selling price minus the variable cost per unit, then round up. With fixed costs of £2,000, a price of £25 and a variable cost of £10, that is £2,000 ÷ £15 = 133.33, so you need 134 sales.
To work out break-even revenue, multiply the break-even units by the selling price. For 134 units at £25, that is £3,350.
Fixed costs stay the same however much you sell, such as rent or a software subscription. Variable costs rise with each sale, such as materials, packaging or delivery.
Contribution margin is what each sale leaves after its variable cost, which goes towards paying your fixed costs. At a £25 price and a £10 variable cost it is £15 per unit, or 60% of the price. To see the margin on a single price, use the margin calculator.
To include a profit target, add the profit you want to your fixed costs before you divide. To make £1,000 on top of £2,000 of fixed costs at £15 per unit, you need (£2,000 + £1,000) ÷ £15 = 200 sales.
You know how many sales you need. Now bill them.
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