Business break-even

How to calculate your break-even point

Key points in this article

  • Your required annual return
  • The available time you have to work

It’s important to know what your break-even point will be when you start up a business. This is where your costs equal your income so you neither make a profit or a loss.

Required return

Enter your desired financial return and your estimated overheads for the upcoming year. The template will automatically calculate the gross margin required.

Download template

What’s your ideal financial return for the upcoming year?

Results

The results box will automatically be generated after you’ve inputted everything. It will tell you the:

  • number of units you have to sell to reach your target
  • total sales needed
  • number of sales per week to achieve this.

Sales

In the sales section, input the price of each unit you’ll sell. Also enter the cost per unit for labour and raw materials. The template will calculate the:

  • total cost per unit
  • gross margin per unit.

Available time

Input the number of weeks you can work during the year – this may be 52 weeks or you may want to allow for a few weeks holiday.

How many weeks do you intend to work during the year?

Use our break-even calculator to find out how much you need to sell to achieve your target financial return.

Download template

Important information Show more

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