What counts as a fixed cost?

Costs that do not change with sales in the month: rent, insurance, base salaries, software subscriptions and loan payments. If a cost rises when you sell more, it is variable, not fixed.

What if my price is below my variable cost?

Then you can never break even — every sale loses money, and selling more only loses more. The calculator says so plainly: raise the price or cut the variable cost first.

Is break-even the same as profit?

No. Break-even is zero profit: revenue exactly covers costs. Profit only starts on sales above break-even, at the contribution margin per unit.

Should I include my own salary in fixed costs?

Yes, if you want the business to pay you. Many founders forget this and call a business 'profitable' while earning nothing themselves — include a realistic salary in fixed costs.

How does VAT affect break-even?

Keep prices and costs on the same basis. If you are VAT-registered, use net (ex-VAT) figures for both; if you are under a small-business VAT-exempt regime, use gross figures for both.

Can break-even change over time?

Yes — rent rises, suppliers reprice, and fixed costs step up when you hire or move premises. Re-run the calculator whenever a major cost changes.

What is a good break-even target?

One you can realistically exceed with room to spare. If break-even needs 90% of your maximum capacity, there is almost no room for a quiet month — lower costs or raise prices.

Does this work for services too?

Yes. A 'unit' can be an hour, a project or a client: fixed costs divided by (price per unit minus variable cost per unit) gives the units needed, whatever a unit is in your business.

Break-Even Calculator for Small Business in Europe

By ExpatMoneyEU Research Team · Reviewed October 2026 · Published 26 October 2026 · Updated 26 October 2026

Small business owner calculating break-even sales in Europe

Researched by ExpatMoneyEU Research Team · Last updated 26 October 2026 · Data: the standard break-even formula: fixed costs divided by contribution margin per unit

Break-Even Calculator

Fixed costs per month (€)

Variable cost per unit (€)

Selling price per unit (€)

Expected sales per month (units)

You break even at

118 units/month

Worked example (the default inputs above): €2,000 fixed costs a month, €8 variable cost per unit, €25 price → contribution €17 per unit → break even at 118 units a month (€2,941 revenue); at 200 units the profit is €1,400 a month.

Key fact: Break-even is not a target, it is a floor: below it you lose money every month, and every sale above it contributes its full contribution margin to profit.

What this calculator does

This calculator finds the sales volume where a small business covers all its costs — the break-even point. Below it you lose money; above it, every extra sale adds its contribution margin straight to profit. It also shows what profit (or loss) your expected volume produces.

→ Profit margin calculator

How to use it

Enter your fixed costs per month — rent, salaries, insurance, subscriptions that do not change with sales.
Enter your variable cost per unit — materials, packaging, delivery and payment fees for one sale.
Enter your selling price per unit and your expected monthly sales, then read your break-even point instantly.

→ E-commerce profit calculator

The formula

Contribution margin per unit = price − variable cost. Break-even units = fixed costs ÷ contribution margin. Break-even revenue = break-even units × price. Example: €2,000 ÷ (€25 − €8) = 117.6 → 118 units; 118 × €25 = €2,941 revenue.

→ Business loan EMI calculator

Worked example with real numbers

A candle maker in Lisbon has €2,000 of fixed costs a month (rent, insurance, market fees), spends €8 per candle on wax, wick, packaging and delivery, and sells each candle for €25. Each sale contributes €17 toward fixed costs, so she breaks even at €2,000 ÷ €17 = 118 candles a month, or €2,941 of revenue. At 200 candles she makes 200 × €17 − €2,000 = €1,400 profit a month. If she cut the price to €20, the contribution falls to €12 and break-even jumps to 167 candles — a small price cut can demand a large sales increase.

→ Profit margin calculator

Reference table

Break-even units at different prices (€2,000 fixed costs, €8 variable cost — illustrative figures):

Price per unit	Contribution	Break-even units	Break-even revenue
€15	€7	286	€4,286
€20	€12	167	€3,333
€25	€17	118	€2,941
€35	€27	75	€2,593

→ E-commerce profit calculator

Sources and disclaimer

Method: the standard break-even formula used in small-business planning. Fixed costs are assumed constant over the month and variable costs constant per unit; in reality both can step up (a second employee, a bigger workshop) once volume passes a threshold. VAT treatment depends on your registration status — use prices and costs on the same VAT basis (both net or both gross).

Estimate only — not tax or financial advice. This tool estimates only. It is not tax, legal or financial advice and does not determine your actual tax, loan or lender decision — check your national tax authority, bank or a qualified adviser for your situation. Always verify current figures with the official source or a qualified adviser before making decisions.

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