Break-even calculator
Break-even Calculator
Find out how many units or projects you need to sell per period to cover your fixed costs — and how many more to hit a target profit.
67
≈ £3,350.00 in revenue per month
67 units / month
≈ £3,350.00 in revenue
Each sale contributes £30.00 towards your fixed costs.
The formula
contribution = price − variableCost
breakEvenUnits = fixed ÷ contribution
targetUnits = (fixed + targetProfit) ÷ contribution
breakEvenRevenue = breakEvenUnits × price
Every unit you sell contributes the difference between price and variable cost towards your fixed costs. Once fixed costs are covered, every additional contribution is profit.
How this calculator works
This calculator uses transparent formulas published in the PoundKit open-source calculator library. Users can review the calculation logic and automated tests on GitHub.
What counts as what
Fixed cost examples
- Rent and utilities
- Accountant and insurance
- Software subscriptions
- Salaries (including your own draw, if fixed)
Variable cost examples
- Materials and packaging
- Shipping and fulfilment
- Payment processing fees
- Platform fees (Etsy, Shopify)
Examples
Product business
Service business with target
Questions
What is break-even point?
Break-even is the number of units or revenue at which your total income exactly covers your total costs — no profit, no loss.What are fixed costs?
Costs that don't change with how much you sell — for example rent, insurance, software subscriptions, accountant fees, and any fixed salary you draw.What are variable costs?
Costs that scale with each sale — materials, packaging, shipping, payment processing fees, platform fees and per-job contractor fees.What is contribution margin?
The amount each sale contributes towards fixed costs after variable costs. It's the selling price minus the variable cost per unit.Should VAT be included in break-even calculations?
No — work in net (ex-VAT) figures. VAT is collected on behalf of HMRC; it isn't your revenue or your cost.Why do you round break-even units up?
You can't usually sell partial units. If the maths says 66.7, you need to sell 67 to actually cover your fixed costs.
Open Source Calculator Library
PoundKit publishes calculation formulas and automated tests to make business calculations easier to understand and verify.
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Formula documentation
Every calculation written out with worked examples.
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Test cases
Automated inputs and expected outputs for each calculator.
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Open-source implementation
Review the code and adapt it for your own tools.