2 min read
What it means
Your break-even point is where contribution from sales exactly covers fixed costs. Below it you lose money; above it you profit. It is set by your fixed costs and your contribution margin per sale — so higher fixed costs or thinner margins push the break-even point up. Work it out with the break-even calculator.
Why it matters for your company
Break-even is a survival number every director should know. It frames pricing, cost decisions and whether a new fixed cost is affordable. Crucially, taking on debt adds a fixed repayment, which raises the break-even point — so before borrowing, check the new sales level you'd need with the break-even loan calculator and confirm it is realistic.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
How does borrowing change my break-even point?
A loan adds a fixed monthly repayment to your fixed costs, so you need to sell more each month just to break even. Always check the new break-even level is comfortably within reach before taking on debt.
Can lowering prices help me reach break-even?
Only if the extra volume more than makes up for the thinner margin — often it doesn't. Lower prices reduce contribution per sale, which can actually raise the break-even point. Model it before cutting prices.
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Read →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.