Find how many units you must sell to cover all your costs (fixed and variable) — the point where profit begins.
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Enter the fixed costs, the selling price and the variable cost per unit. See how many units you must sell.
The break-even point is the number of units at which revenue covers all costs (fixed + variable). Above it, profit begins.
Break-even point 500 units · Break-even revenue 25,000 £Real-estate and business calculations. Standard formulas for commissions, price per m², margins and markups. Instant in-browser calculation, no account, no data sent. Last updated: 11 July 2026 · gov.uk: set up a business.
⚖︎ Results are for informational purposes and do not constitute tax advice. For specific situations, consult a licensed accountant or the relevant tax authority.
The point is found by dividing the fixed costs by the contribution margin (price − variable cost):
With £10,000 fixed costs, price £50 and variable cost £30: 10,000 ÷ 20 = 500 units.
It is the number of units sold at which total revenue equals total costs, so the business makes neither profit nor loss. Above this point, profit begins.
Divide fixed costs by the contribution margin per unit (price − variable cost). For example, £10,000 fixed ÷ (£50 − £30) = 10,000 ÷ 20 = 500 units.
It is the difference between the selling price and the variable cost per unit. Each unit sold contributes this amount toward covering the fixed costs and then profit.
Fixed costs (rent, wages, subscriptions) do not depend on how many units you sell. Variable costs (raw materials, packaging, commissions) rise with each unit produced or sold.
At least the number given by the break-even point. Below it you make a loss, exactly at it you break even, and above it each unit brings a profit equal to the contribution margin.
Each unit sold above the point brings a profit equal to the contribution margin, because all fixed costs have already been covered.
By reducing fixed costs, raising the selling price or lowering the variable cost per unit. Any of these increases the contribution margin and lowers the number of units needed.
Not directly. Use net values (excluding VAT) for the price and costs, because VAT is collected for HMRC and is neither revenue nor cost for the business.