Reviewing a planning wall with two intersecting lines.

Turn costs into a sales target

How many units must I sell to cover monthly costs?

Connect your cost base with a practical sales-volume target. Estimate the whole units and sales revenue needed to cover fixed costs, then compare that target with the demand and capacity you can realistically serve.

Start the calculator

Free to use. Results after contact details.

IS THIS THE RIGHT TOOL?

For sellers testing whether a product's contribution can support their monthly operating costs.

YOUR BUSINESS DECISION

Break-even Calculator

Start with your own figures or use the example inputs. Complete the steps, then share contact details to reveal your free result.

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MAKE THE INPUTS USEFUL

Before you begin.

Set one monthly cost period

Enter monthly fixed costs such as the rent, salaries and subscriptions you want the model to cover. Keep annual charges converted to a monthly basis.

Use a consistent unit

Enter the selling price and variable cost for the same product or representative unit. Variable cost should include the costs that move with each sale, such as product, packing, delivery and selling charges.

Keep the product mix realistic

For a range of products, run separate scenarios or use a carefully chosen representative contribution. The tool assumes the selling price and variable cost stay constant as volume changes.

What your result means.

Break-even units round upward so the estimated contribution covers the fixed costs entered. Required sales revenue is the sales value of that whole-unit target. If price does not exceed variable cost, selling more cannot cover fixed costs under those assumptions; revise the price or cost model first.

Unit contribution covering monthly fixed costs
Unit contribution covering monthly fixed costs
Illustrative guide to this tool. Example figures are not guaranteed outcomes.

COMMON QUESTIONS

Understand the decision.

Which costs belong in fixed costs?

Enter monthly costs that stay broadly the same over the sales range you are modelling, such as rent, fixed salaries and subscriptions. Put costs that rise with each sale in Variable cost per unit so the monthly target does not count them twice.

What if the selling price does not cover the variable cost?

The calculator reports that there is no break-even point when price is equal to or below variable cost per unit. Each sale then contributes nothing, or a loss, toward fixed costs. Review the selling price and unit costs before increasing sales volume.

Can I use one calculation for several products?

Use a realistic sales-weighted average selling price and variable cost for the mix you expect to sell. The calculation assumes that mix stays constant. Recalculate when the mix changes, especially if some products contribute much less than others.

Does reaching break-even mean I have enough cash?

Not necessarily. Stock may be paid for before sales and customer payments may arrive later. Review payment timing and working capital separately.

FROM PLANNING TO ACTION

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