General information tools only — not tax or financial advice. Rates and rules vary by country and change over time; confirm important figures with a qualified accountant.
How to use the break-even calculator
The idea in one line
Every sale contributes (price − variable cost) towards paying off your fixed costs. The break-even point is where those contributions exactly equal the fixed costs — below it you lose money, above it every extra unit adds profit.
What counts as fixed and variable?
Fixed costs stay the same whatever you sell: rent, salaries, insurance, software. Variable costs rise with each unit: materials, packaging, transaction fees, delivery. If a cost is partly both, split it as best you can — the estimate is still useful.
Example
Fixed costs 10,000, price 50, variable cost 30: each unit contributes 20, so break-even is 10,000 ÷ 20 = 500 units (25,000 of revenue). Sell 600 units and profit is 600 × 20 − 10,000 = 2,000.
Frequently asked questions
What if my price is lower than my variable cost?
Then every unit sold increases your loss and there is no break-even point. You would need to raise the price, cut variable costs, or both.
Can I use this for a service business?
Yes. Treat one billable hour, one job, or one client package as a 'unit', with its price and the direct cost of delivering it.
Should fixed costs be monthly or yearly?
Either — just be consistent. Monthly fixed costs give you a monthly break-even target; yearly figures give an annual one.
More free tools
VAT / Sales Tax Calculator
Add VAT or sales tax to a price, or strip it out of a tax-inclusive total — at any rate you enter.
Take-Home Pay Calculator
Start from gross salary, add your own deduction rows, and see the real net pay per month and per year.
Depreciation Calculator
Straight-line and declining-balance schedules for any asset, year by year, ready for your books.
Margin & Markup Calculator
Convert between cost, price, margin, and markup — and find the price that hits your target margin.
Loan Payment Calculator
Monthly payment, total interest, and a first-year amortisation breakdown for any loan or finance deal.
Compound Interest Calculator
See savings and investments grow with regular monthly contributions, year by year.
Invoice Total Calculator
Build an invoice with line items, discount, and tax — and print a clean total for your client.
Salary to Hourly Converter
Convert an annual salary to hourly, weekly, and monthly pay — or turn an hourly rate into a salary.
Business Ratios Calculator
Current ratio, quick ratio, debt-to-equity, and gross margin — with plain-English explanations.