What is break-even analysis?

Break-even analysis determines the number of units you need to sell (or revenue you need) to cover all your costs, both fixed and variable.

What are fixed costs?

Fixed costs are expenses that don't change with production volume, such as rent, salaries, and insurance.

Variable costs change with each unit produced, for example materials, shipping, and packaging.

Break-even units = Fixed Costs / (Selling Price − Variable Cost per Unit). Break-even revenue = Break-even units × Selling Price.

Calculate your break-even point in units and revenue. Enter fixed costs, variable costs, and selling price.

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Fixed Costs (£)

Rent, salaries, insurance

Variable Cost / Unit (£)

Materials, shipping

Selling Price / Unit (£)

1

Enter your total fixed costs

2

Enter the variable cost per unit

3

Enter the selling price per unit

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