Break-even calculator
Break-even units = fixed costs ÷ (price − variable cost per unit). With AED 60,000 of monthly fixed costs, a price of AED 250 and a variable cost of AED 130, you need to sell 500 units (AED 125,000 of revenue) a month to break even. Use prices before VAT, because VAT is not your income.
Reviewed by Countify's ACCA/FCCA chartered certified accountants · Updated
- Contribution per unit
- AED 120.00
- Contribution margin
- 48%
- Break-even units a month
- 500
- Break-even revenue a month
- AED 125,000.00
Results are estimates for general information, not tailored advice.
Break-even with AED 60,000 fixed costs
Variable cost AED 130 a unit.
| Price | Break-even units a month | Break-even revenue a month |
|---|---|---|
| AED 200 | 858 | AED 171,600.00 |
| AED 250 | 500 | AED 125,000.00 |
| AED 300 | 353 | AED 105,900.00 |
Small price changes move the break-even point a lot.
Using break-even in planning
Break-even is a quick test for pricing, new locations and hiring decisions. Fixed costs include rent, salaries, licence and software; variable costs move with each sale, such as stock, packaging, delivery and card fees. Pair it with the cash runway calculator to see how long you can operate below break-even.
Frequently asked questions
How do I calculate break-even revenue?
Fixed costs ÷ contribution margin ratio, where the ratio is (price − variable cost) ÷ price.
Bookkeeping and management accounts
Monthly bookkeeping in Xero, Zoho Books or QuickBooks with management accounts you can run the business on, for a fixed fee.