Cashflow planning
Break-even Calculator
How many units do you have to sell to keep the lights on? Fixed costs, sell price, variable cost — three numbers, one honest answer.
Related calculators
Common questions
- What counts as a 'fixed cost'?
- Anything that doesn't change with how many units you sell — rent, your own salary, software subscriptions, insurance, accountancy fees, business rates. If turning sales off tomorrow wouldn't stop the bill, it's fixed.
- What counts as 'variable cost per unit'?
- Things that scale with sales: cost of goods, packaging, payment-processor fees, delivery charges, sales commission, hourly contractors. Each unit you sell adds these costs back on top.
- What if my contribution margin is negative?
- Then no number of units saves you — you're losing money on every sale. Either raise the price or cut the variable cost. The calc flags this with infinity (∞) so you don't talk yourself into 'volume will fix it'. It won't.
- How do I include my own salary?
- If you draw a salary from the business, include it in fixed costs. If you're a Ltd director taking dividends only, don't — dividends come from profit, not above the line. Be honest with yourself either way: you need to eat.
- What's a healthy margin of safety?
- Aim for actual sales to be at least 1.5× your break-even units. Below that, a bad month wipes out the year. Most stable small businesses run 2-3× — gives oxygen for marketing, growth, the unexpected.