Planning calculator

Break-Even Calculator

Work out how many sales you need each month to cover fixed costs using your average selling price and variable cost per sale.

Planning

Break-Even Calculator

Work out the number of sales needed to cover fixed costs using unit price and variable cost.

Break-even units

77

Break-even revenue

£7,700

Contribution per unit

£65

Break-even units are rounded up because a partial sale will not cover the remaining cost.

These calculators provide estimates from the figures entered. They do not replace tax, payroll, or accounting advice for your specific business.

Guide

Use break-even numbers for practical planning

A break-even calculation helps you understand the sales volume required before profit begins. It is useful for pricing, cash flow, and growth planning.

How to use this calculator

  • Enter monthly fixed costs such as rent, software, salaries, insurance, and subscriptions.
  • Enter the average selling price for one product, service package, project, or sale.
  • Enter the variable cost attached to one sale, such as materials, direct labour, merchant fees, or delivery.
  • Review the break-even units and break-even revenue shown in the result panel.

What the results mean

  • Contribution per unit is selling price minus variable cost.
  • Break-even units show how many sales are needed to cover fixed costs.
  • Break-even revenue is the sales revenue needed to reach that break-even point.
  • If there is no margin, the selling price is not high enough to cover variable cost and fixed costs.

Figures to check first

  • Separate fixed costs from variable costs before entering figures.
  • Use an average selling price if you sell multiple products or service packages.
  • Include owner salary or drawings only if you want the break-even point to cover them.
  • Review the calculation whenever pricing, direct cost, or overheads change.

Common questions

Should I use monthly or annual costs?

Use monthly fixed costs because the calculator is designed to show a monthly break-even point.

What if I sell more than one product?

Use an average selling price and average variable cost, or run the calculator separately for each main product or service line.

Does break-even mean I have healthy cash flow?

Not necessarily. Break-even shows profit coverage, but cash flow also depends on payment timing, tax, stock, debt, and other commitments.

Want clearer management numbers?

AMS can help with management accounts, budgeting, forecasting, KPI reporting, and cash flow planning so break-even numbers become part of regular decision-making.