The Break-Even Calculator
Two questions a business asks constantly: how many do I have to sell before this pays for itself, and did that money come back. Switch between them above.
The numbers
Everything is worked out in your browser. No figure is sent anywhere.
Business questions
How to work out your break-even point
- Enter the fixed costs you carry whatever happens.
- Enter the price you sell at and what one costs you to make or deliver.
- Read the units and the sales you need to cover the fixed costs.
Frequently asked questions
What counts as a fixed cost?
Anything you pay whether or not you sell: rent, salaries, software, insurance, accountancy. A variable cost is anything that only happens because you made a sale: materials, packaging, shipping, payment fees.
What is the contribution margin?
The share of each sale that is left after the variable cost. At a price of 49 and a cost of 19 the contribution is 30, so the margin is about 61 percent. The higher it is, the fewer sales you need.
How is ROI annualised?
By compounding: the ratio of what came back to what went in, raised to the power of one over the number of years, minus one. That turns a 60 percent return over three years into about 17 percent a year, which is comparable with anything else.
Does it handle a mix of products?
Not directly. Use the average price and the average cost across the mix, or run it once per product line with its share of the fixed costs.
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