XYCalc

Break-Even Calculator

Find how many units you need to sell to cover your costs, the break-even sales figure, and the sales needed to hit a profit target.

New: please check your results.

Units to break even
334 units
Break-even sales
£8,333.33
Contribution per unit
£15.00
Contribution margin
60 %
Units for your profit target
334 units
Sales for your profit target
£8,350.00
Costs Sales Fixed £5,000 334 units
Below the break-even point you make a loss; above it, a profit
£

£

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What it does

Work out the break-even point: how many units you need to sell, and how much in sales, before your business covers its costs and starts making a profit. Add a profit target to see the sales you need to reach it. A unit can be a product, an hour of your time or a service.

How to use it
Fixed costs

Costs you pay whatever you sell, over the period you're looking at (a month or a year): rent, insurance, salaries, software, loan repayments.

Selling price per unit

What each customer pays per item, hour or service, before VAT if you're VAT-registered.

Variable cost per unit

What each extra sale costs you: materials, stock, packaging, delivery, card fees, sales commission.

Profit target (optional)

The profit you want over the same period. Leave at 0 to see just the break-even point.

Common uses

The formula
Contribution per unit = price − variable costBreak-even units = fixed costs ÷ contribution per unitBreak-even sales = break-even units × priceUnits for a target = (fixed costs + target profit) ÷ contribution per unit

Where:

Contribution
what each sale adds towards fixed costs and profit

Units are rounded up, since you can't sell part of one. Break-even sales uses the exact point, before rounding.

Worked example

With £5,000 of fixed costs, a price of £25 and a variable cost of £10:

  • Contribution per unit: £25 − £10 = £15.00
  • Break-even: £5,000 ÷ £15.00 = 333.33 units, so 334 units
  • Break-even sales: 333.33 × £25 = £8,333.33

Questions people ask

What's the difference between fixed and variable costs?

Fixed costs stay the same however much you sell: rent, insurance, software subscriptions. Variable costs rise with every sale: materials, stock, postage, card fees. A cost that's partly both, such as a phone contract with call charges, can be split between them.

What is contribution margin?

The share of each sale left after variable costs, which goes towards fixed costs and then profit. A 60% contribution margin means 60p of every £1 of sales helps cover overheads.

How can I break even sooner?

Raise the price, cut the cost of each unit, or cut fixed costs. Because the price minus the variable cost is what pays off fixed costs, even a small price rise can lower the break-even point a lot.

Last checked 6 November 2026 · Last rev. 31 October 2026 · 5134