This calculator helps you determine how many units you need to sell to cover your total fixed costs. The break-even point is where your business makes neither a profit nor a loss, making it one of the most important metrics in pricing and financial planning.
Understanding your break-even point allows you to set realistic sales targets, evaluate pricing strategies, and assess whether a product or business model is viable. It is especially important for ecommerce businesses, startups, and product-based businesses where cost control is critical.
By entering your fixed costs, selling price, and variable cost per unit, you can quickly see the minimum sales volume required to cover your expenses and move into profitability.
Formula: Break-even Units = Fixed Costs ÷ (Price − Variable Cost)
The result shows the number of units you must sell to cover your fixed costs. Once you exceed this number, each additional sale contributes to profit.
The calculator first determines contribution per unit by subtracting variable cost from selling price. It then divides fixed costs by this contribution to determine the break-even point in units.
This provides a clear threshold for profitability and helps guide pricing and cost decisions.
Example: Fixed costs £500, Price £25, Variable cost £10 → Contribution £15 → Break-even = 33.33 units
It is the point where total revenue equals total costs, meaning no profit or loss.
No. If contribution is zero or negative, break-even cannot be reached.
It helps you set sales targets and determine whether your pricing strategy is viable.