How do I use the break-even calculator?
- Add up monthly fixed costs: rent, salaries, licence, software.
- Enter your price and the variable cost of each sale.
- Press Find break-even to see units and revenue per month.
Break-even calculator: frequently asked questions
What counts as a fixed cost?
Costs that stay the same whatever you sell, such as rent, salaries, trade licence and subscriptions.
How can I lower my break-even point?
Raise prices, cut variable costs per unit, or reduce fixed costs. Small price rises usually have the biggest effect.
What is a break-even point?
The sales volume at which revenue covers all fixed and variable costs, so profit is zero.
How is break-even calculated?
Fixed costs divided by (price per unit minus variable cost per unit).
What counts as a variable cost?
Costs per unit sold, such as materials, packaging, payment fees, delivery and sales commission.
Should VAT be included?
No. Use prices and costs excluding VAT, because VAT is passed to the tax authority.
Does it work for services?
Yes. Treat a billable hour, project or subscription month as the unit.
What is contribution margin?
Price minus variable cost per unit — the amount each sale contributes to fixed costs and profit.
Are these calculations based on UAE rules?
Where a UAE rule applies (VAT, labour law, mortgage limits) the tool follows it and names the source. Rules change, so confirm important figures with the relevant authority.
Is the break-even calculator free?
Yes. It is free with no sign-up and no usage limits for normal use.