2 min read
Break-even price = variable cost per unit + (fixed costs ÷ units sold). Anything above this is contribution to profit.
How to use it
Enter your fixed costs for the period, the variable cost of making or delivering one unit, and how many units you expect to sell. The result is the minimum price per unit that covers everything — sell above it and you make a profit, below it and you make a loss.
Because fixed costs are spread across the units, selling more lowers the break-even price. Try a lower volume to see how much pricing headroom a quiet period costs you.
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Frequently asked questions
What counts as a fixed cost?
Costs that don't change with how much you sell — rent, salaries, software, insurance. Variable costs are the ones that rise with each unit, like materials, shipping or transaction fees.
Does this include profit?
No — this is the price that breaks even. Add your target margin on top to price for profit. The 'target margin price' and 'markup' calculators can help with that step.
Is this a quote?
No — it's a free illustration. Your actual Credicorp offer depends on an assessment of your company.
Related reading
Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.