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US · 2025

Break-Even Calculator

Calculate break-even point in units and revenue for your business.

Last reviewed: 3 December 2025Source: HMRC — Running a business
Break-Even Calculator · USBusiness & Freelance

Rates & sources

UK company rates (Corporation Tax, VAT, payroll NI) as published by HMRC and Companies House.

Source: HMRC — Running a business — figures refreshed at the start of each tax year.

When to use this calculator

  • Before pricing a job, setting margin targets, or reviewing hiring costs.
  • When you want to test sensitivity around volume, VAT, markup, or overhead changes.
  • When you need a practical estimate before committing to a budget or proposal.

A realistic US planning example

Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.

Fixed Costs ($)

$500

Selling Price per Unit ($)

$0.30

Variable Cost per Unit ($)

$500

After entering these figures, compare break-even units, revenue needed and contribution margin before deciding which scenario looks strongest.

How to read your results

Break-Even Units

Use this metric to compare scenarios side by side and understand how the key drivers affect the final outcome.

Revenue Needed

Use this metric to compare scenarios side by side and understand how the key drivers affect the final outcome.

Contribution Margin

Use this metric to compare scenarios side by side and understand how the key drivers affect the final outcome.

Common mistakes

  • !Using optimistic assumptions without testing a more cautious scenario as well.
  • !Comparing outputs from different tools without checking that the inputs match.
  • !Treating the result as a final quote instead of a planning estimate.

What to do next

  • Try at least one more scenario so you can compare a realistic range instead of a single estimate.
  • Use the related calculators below to cross-check the decision from another angle.
  • Open one of the linked guides if you need more context before you act on the result.

Frequently asked

Break-even units = fixed costs / (selling price per unit - variable cost per unit). For example, £10,000 fixed costs with a £25 selling price and £15 variable cost per unit gives a break-even of 1,000 units. In revenue terms: fixed costs / contribution margin ratio.

Use arrow keys to navigate items, Enter or Space to expand/collapse.