Finance Calculator
How many units do you need to sell to cover your costs?
The break-even point is the number of units you need to sell so that your total revenue exactly covers your total costs — fixed and variable. The formula is: Break-Even Units = Fixed Costs ÷ (Selling Price − Variable Cost per Unit). The denominator is called the contribution margin — the amount each unit sale contributes toward covering fixed costs and generating profit.
For example, if your fixed costs are £5,000 per month, your product sells for £25 and costs £12 to make, your contribution margin is £13 per unit. You need to sell 385 units (£5,000 ÷ £13) to break even. Every unit sold above that is pure profit at £13 per unit. Understanding this number is essential for pricing decisions, business planning and investor conversations.
Use this calculator alongside our Freelance Rate Calculator to set profitable rates, or our Budget Planner to keep your fixed costs in check.