Break-even calculator
Estimate how many sales, bookings or sessions cover your fixed costs. Use one product or service and one consistent period.
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The break-even formula
Contribution per sale = selling price − variable cost per sale. Break-even sales = fixed costs ÷ contribution per sale. Round up to the next whole sale to cover all fixed costs.
The selling price must exceed the variable cost. Otherwise each additional sale contributes nothing toward fixed costs or increases the loss. Use a separate calculation where different services have different prices or costs.
Worked example
A service with £1,000 monthly fixed costs, a £100 price and £25 variable cost contributes £75 per sale. £1,000 ÷ £75 is 13.33, so at least 14 whole sales are needed. Those sales bring in £1,400 revenue and contribute £1,050 toward fixed costs.
Check which costs belong in each input
Fixed costs might include monthly software and insurance. Variable costs increase with each sale, such as materials or a per-job subcontractor fee. Use the same period for the fixed costs and the sales target, and include the costs relevant to your business.
Common questions
Can I use this for a service business?
Yes. Treat a booking, session or fixed-price project as one sale, and use the variable costs attributable to that sale.
Why is the sale count rounded up?
A fraction of a whole sale may leave some fixed costs uncovered. The calculator rounds up and shows the revenue at that whole-sale count.