BUSINESS BREAK-EVEN
CALCULATOR.
How many sales does your business need to make before it starts generating a profit?
Find out exactly where your business could break even based on the costs and prices you enter.
Calculate fixed expenses, variable costs, contribution margin, break-even sales, required revenue and monthly profit targets.
HOW MANY SALES
DO YOU NEED TO BREAK EVEN?
Enter your selling price, variable costs and monthly overheads.
The calculator shows the minimum whole number of sales required to cover your monthly business costs.
Break-even sales are rounded up to the next whole sale. Calculations assume one average selling price and variable cost per sale, constant monthly fixed costs and sufficient demand and delivery capacity. Annual results multiply the current monthly scenario by 12. Figures exclude tax, VAT adjustments, financing principal, exceptional costs and any expenses not entered.
REVENUE VS COSTS.
Compare your current monthly revenue, total expenses and the revenue needed to reach your profit target.
Bars share a common scale based on the largest displayed value. They compare monetary amounts, not sales counts.
WHAT IS THE
BREAK-EVEN POINT?
Your break-even point is where total revenue covers total business costs.
At this point, your business is not making a profit or loss under the costs included in the calculation.
01. Fixed Costs
Expenses that generally stay the same regardless of sales volume, such as rent, fixed salaries and software.
02. Variable Costs
Expenses linked directly to each sale, such as stock, materials, postage and transaction fees.
03. Contribution
The money left from each sale after variable costs. This amount helps cover fixed expenses and then profit.
Example: A Business Selling a £100 Product
Imagine a business selling a product for £100.
Variable costs are £35 per sale, with another £2 in payment fees.
This leaves £63 contribution per sale.
If fixed monthly expenses total £2,200, the business needs 35 sales to cover those costs.
At 35 sales, revenue is £3,500 and estimated profit is £5 before tax. The exact mathematical break-even quantity is approximately 34.92 sales, so whole sales are rounded up.
At 50 sales, monthly revenue would be £5,000 and estimated profit would be £950 before tax.
To reach £3,000 monthly profit, the business would need 83 sales, generating £8,300 revenue and £3,029 estimated profit.
WHY EVERY BUSINESS OWNER
SHOULD KNOW THEIR BREAK-EVEN POINT.
Understanding break-even can help you make better decisions about pricing, expenses and sales targets.
Set Realistic Sales Targets
Understand the minimum sales volume required to cover the costs entered in your model.
Improve Pricing Decisions
Explore how increasing or decreasing your selling price affects contribution and required sales.
Control Business Expenses
See how fixed overheads and direct costs affect the number of sales needed to become profitable.
Plan for Growth
Calculate how many sales you may need to achieve a desired monthly profit.
Evaluate New Products
Compare different pricing and cost assumptions before introducing a new product or service.
Prepare Business Plans
Use break-even scenarios to support financial planning, budgeting and discussions with potential funders.
BUSINESS BREAK-EVEN FAQS.
What is a business break-even point?
It is the level of sales where revenue covers all fixed and variable costs included in the model.
How do I calculate break-even sales?
Divide fixed costs by contribution per sale, where contribution is selling price minus variable costs. Round up to a whole sale.
What is contribution margin?
Contribution margin is the percentage of revenue remaining after variable costs. It indicates how much revenue is available to cover fixed costs and profit.
What is the difference between fixed and variable costs?
Fixed costs generally do not change with sales volume over the relevant period. Variable costs change with each sale.
Can I use this for a service business?
Yes. Treat one completed service, booking or job as a sale. Enter its average selling price and direct delivery cost.
What happens if my variable cost is higher than my selling price?
Each additional sale generates a negative contribution. Under those assumptions, selling more cannot cover positive fixed costs.
Does this calculator include tax?
No. It estimates operating profit before tax and any expenses not entered. Use consistent VAT-exclusive amounts where appropriate.
Is this business break-even calculator free?
Yes. It is completely free with no registration or payment required.
KNOW YOUR NUMBERS.
NOW LET'S GROW YOUR BUSINESS.
Understanding your break-even point is a starting point. Building a profitable business also requires a plan for attracting customers, managing expenses and delivering your services.
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