Step 1: Your monthly fixed costs
Monthly overheads
Step 2: Your team
Step 3: Your margins
Products / services and sales mix
Your break-even point
Contribution margin 50.0%. Fixed costs £0 per month.
| Product | Mix | Sales | Gross profit | Cost of sales |
|---|---|---|---|---|
| Product 1 | 50.0% | £0 | £0 | £0 |
| Product 2 | 50.0% | £0 | £0 | £0 |
| Totals | 100% | £0 | £0 | £0 |
Common Questions About Break-Even Analysis
What is the formula for the Break-Even Point?
To calculate the break-even point in units, use this formula: Fixed Costs ÷ (Sales Price per Unit – Variable Cost per Unit). This reveals exactly how many units you must sell to cover all costs before generating a profit.
What is the difference between Fixed and Variable costs?
Fixed Costs are expenses that remain constant regardless of sales volume, such as rent, insurance, and salaries. Variable Costs fluctuate directly with production, such as raw materials, shipping, and sales commissions.
How do I lower my Break-Even Point?
You can lower your break-even point (achieving profitability sooner) by raising your prices, reducing variable costs (e.g., negotiating with suppliers), or lowering fixed overheads (e.g., reducing office space or administrative expenses).
Ready to Finalise Your Path to Profitability?
The break-even point is your minimum survival target. Our detailed assessment helps you separate your fixed and variable costs to determine exactly where profitability begins.
Click below to gain crucial financial certainty for your UK business or startup.
Start Your 90-Second Assessment →Essential financial certainty for UK business owners and entrepreneurs.
