Break-Even calculator
Friday 5th September 2025
Last updated: 20th October 2025
Our 2025 Break-Even Calculator will help you work out exactly when your business starts to make a profit.
Simply enter your fixed costs below, selling price, and variable costs, and the tool will provide a clear breakdown of how many units you need to sell to cover your expenses.
Are you having troubles with breaking even in your business?
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How to calculate break-even point
The formula is straightforward:
Break-even point (units) = Fixed Costs ÷ (Selling Price per Unit – Variable Cost per Unit)
Example:
- Fixed costs: £2,700 (rent, utilities, etc.)
-
Selling price: £45
-
Variable cost per unit: £30
- Profit per unit = £15
£2,700 ÷ £15 = 180 units to break even.
That means you need to sell 180 units just to cover your costs. Anything beyond that is profit.
How can the break-even point help your business?
The break-even point is more than just a number, it’s a tool to guide smarter decisions and build resilience in your business. Here are three key benefits:
Feasibility and practicality
Before launching a new product, service, or project, break-even analysis helps you test whether the idea is financially viable. By knowing when and at what price point you’ll turn profitable, you can set realistic timelines, allocate resources effectively, and build a clearer path to success.
Analysis
Markets change constantly. Whether from supply chain pressures, rising costs, or shifts in customer demand. Break-even analysis shows you how fluctuations impact your bottom line. It helps you adapt pricing, re-forecast sales, and understand how long it will take to recover from setbacks.
Business strategy
Break-even insights are invaluable for shaping strategy. From promotional campaigns to cost cutting initiatives, you can model different scenarios and see the exact sales needed to cover expenses. This allows you to refine marketing tactics, optimise pricing, and make confident business decisions.
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