Break Even Calculator
Enter your fixed costs, the selling price and the cost of each unit. Add a profit target or expected sales for more detail.
Fixed costs are things like rent and software. The cost per unit covers materials, packaging and delivery.
Worked examples
Selling a product at £25
£5,000 fixed costs, £25 price, £10 cost per unit
334 units, £8,333 of sales
Each unit contributes £15 and 5,000 ÷ 15 is 333.3.
With a profit target
The same, aiming for £3,000 profit
534 units
(5,000 + 3,000) ÷ 15 = 533.3, rounded up.
About Break Even Calculator
Your break even point is the level of sales at which your income exactly covers your costs, so you make neither a profit nor a loss. Every unit you sell contributes its price less its own variable cost towards the fixed costs of the business, such as rent, wages and software. Once those contributions add up to the fixed costs, you have broken even and every further unit is profit.
Enter your fixed costs for the period, the selling price and the cost of each unit. The page gives the number of units and the sales value needed to break even. Add a profit target to see what you must sell to reach it, or the number of units you expect to sell to see your profit or loss and how far sales could fall before you start losing money.
How to use Break Even Calculator
- Enter your fixed costs for a month or a year.
- Enter the selling price and the cost of each unit.
- Optionally enter a profit target and the units you expect to sell.
- Read the break even units and sales, then test other prices and costs.
Common uses
- Setting a minimum sales target for a new product
- Testing whether a price rise is needed
- Planning how many bookings a service needs each month
- Checking a business idea before spending money
Sources
Last reviewed 18 October 2026.
Frequently asked questions
How do you calculate break even?
Divide the fixed costs by the contribution per unit, which is the price less the cost of a unit. £5,000 of fixed costs and £15 contribution gives 333.3 units, so 334 whole units are needed to break even.
What counts as a fixed cost?
Costs that do not change with sales in the short term, such as rent, salaries, insurance and subscriptions. Costs that change with each unit, such as materials, packaging and delivery, go in the cost per unit.
What is the margin of safety?
It is how far sales can fall below your expected level before you reach break even, shown as a percentage of expected sales. A higher margin means you are further from a loss.
Should I use prices with or without VAT?
Use prices without VAT, since VAT is collected for HMRC and is not your income.
What if the price is lower than the cost per unit?
Then every sale loses money and there is no break even point. You need to raise the price or cut the cost of each unit.