Find out how many units you need to sell to cover your costs and reach your profit target. Visualise your break-even point instantly.
This calculator determines the break-even point for a UK business — the level of sales at which total revenue equals total costs and the business makes neither a profit nor a loss. It also shows the margin of safety above break-even.
Note: Break-even analysis assumes a single product or average selling price. For multi-product businesses, use a weighted average contribution margin.
Contribution margin per unit: £30 (60.0% of selling price). Each unit sold contributes this amount towards covering fixed costs and generating profit.
Where the lines cross is your break-even point
The contribution margin is the selling price minus variable costs per unit. It shows how much each sale contributes to covering fixed costs. A higher contribution margin means fewer sales needed to break even.
The margin of safety is the difference between your actual (or projected) sales and the break-even point. It shows how much sales can fall before you start making a loss. A higher margin of safety reduces business risk.
Break-even analysis helps you set prices, plan production targets, and evaluate the impact of cost changes. It’s a key tool for business planning, budgeting, and assessing the viability of new products or services.