Calculate the break-even point

With the Calculate Break-even Point tool , you discover the moment at which your company, product, or project becomes profitable. The break-even point is the turning point at which your revenue exactly equals your costs. Until that moment, you make a loss; after that, you make a profit.

For entrepreneurs, this is a crucial calculation when determining prices, volumes, and growth strategies.

What is the break-even point?

The break-even point is the number of units sold or the revenue at which:

Total revenue = Total costs

There are two main types of costs:

• Fixed costs (rent, subscriptions, insurance)
• Variable costs (purchase price per product, shipping costs)

Formulas

Break-even sales volume (quantity): Fixed costs ÷ (Selling price − Variable costs)

Break-even revenue: Break-even sales volume × Selling price

Why the break-even point is important

• insight into minimum sales targets
• better pricing policy
• realistic revenue forecast
• justification for investments

Who is this tool suitable for?

• self-employed
• webshops
• starting entrepreneurs
• product sellers
• service providers

Frequently Asked Questions

Is this inclusive of VAT? No, standard excluding VAT.

Can I also use this for services? Yes, as long as you can determine the costs and price per unit.

What if my variable costs are higher than my price? Then you can never break even; you will always make a loss.