Break-Even Calculator

Input accuracy

Are you using real, current numbers — not rough guesses that flatter the result?

Benchmark fit

Is your result healthy for your specific business model, not just positive?

Sensitivity

Which single input, if wrong, would change the result most?

Time horizon

Does this hold up over 12 months, or only at today's volume?

Next decision

What should change in the business because of this number?

Break-even analysis is the single fastest way to sanity-check a business model. If the break-even volume is higher than any realistic sales forecast, the pricing or cost structure needs to change before you build anything.

This calculator computes contribution margin (price minus variable cost) and divides your fixed costs by it to get the exact unit volume you need to hit each month.

Free calculator

Find exactly how many units or customers you need to sell each month to cover your fixed costs.

Fixed costs per month£/mo

Price per unit£

Variable cost per unit£

Results

Contribution margin£30

Contribution margin %66.7%

Break-even units/month134

Break-even revenue/month£6.0k

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Contribution margin is the number that matters

Contribution margin is what's left after variable costs — the amount each sale contributes toward covering fixed costs. A high price with thin contribution margin (because variable costs are high too) needs far more volume to break even than a lower price with fat margin.

When break-even reveals a broken model

If your break-even volume requires selling more units than the entire addressable market contains, or more than any realistic marketing budget can generate leads for, the model is broken at the pricing or cost-structure level — not at the execution level. Fix the numbers before fixing the marketing.

How this calculator works

Enter your fixed costs per month (rent, salaries, software — costs that don't scale with sales).
Enter your price per unit.
Enter your variable cost per unit (COGS, fees, delivery).
The calculator shows contribution margin, break-even units, and break-even revenue.

Direct answer — Break-Even Calculator

Calculate exactly how many units or customers you need to sell each month to break even. Free break-even point calculator with contribution margin.

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Frequently asked questions

What's a healthy contribution margin?

SaaS businesses typically target 70–85% gross margin. Ecommerce is often 30–50%. Services can be 40–70%. Below 20% margin is very difficult to scale profitably regardless of volume.

What if my break-even units is negative or impossible?

That means your price is below your variable cost — every sale loses money regardless of volume. Raise the price or cut delivery cost before doing anything else.

Does break-even include one-off startup costs?

No — this calculator measures ongoing monthly break-even, not payback of initial investment. Use the startup cost calculator for one-off costs and the ROI calculator for total payback period.

Last reviewed 13 September 2026