Valusage Business Advisors

Illustrative decision tools

Use the inputs to frame a question and identify evidence gaps. Results are illustrative and do not determine a filing position, authority outcome or advisory conclusion.

Estimate UAE end-of-service gratuityCalculate break-even units and revenue
Control pathwayIllustrative
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  1. 01Facts
  2. 02Evidence
  3. 03Treatment
  4. 04Approval
A practical review sequence, not a promise of a regulatory or commercial outcome.

Break-even calculator for UAE businesses

Break-even units equal fixed costs divided by selling price less variable cost per unit. The tool also calculates break-even revenue and the volume needed for an illustrative target operating profit.

Cost and price assumptions

Values remain in this browser session and are not stored or sent to analytics.

Illustrative threshold

400 units

Break-even revenue
AED 100,000.00
Contribution per unit
AED 125.00
Contribution margin
50.0%
Target-profit units
560
Target-profit revenue
AED 140,000.00
Discuss the assumptions

Calculation steps

  1. Contribution per unit = selling price − variable cost per unit.
  2. Break-even units = fixed costs ÷ contribution per unit.
  3. Contribution-margin ratio = contribution per unit ÷ selling price.
  4. Break-even revenue = fixed costs ÷ contribution-margin ratio.
  5. Target-profit units = fixed costs plus target operating profit ÷ contribution per unit.

Classifying costs as fixed or variable requires judgement. This single-product illustration excludes sales mix, capacity constraints, step costs, discounts, financing, tax and timing differences.

Method source and review date

Reviewed 5 September 2026. See ACCA’s cost-volume-profit analysis and OpenStax managerial accounting guidance.

Frequently asked questions

What is the break-even formula?

Break-even units equal fixed costs divided by contribution per unit. Contribution per unit equals selling price less variable cost per unit.

How is break-even revenue calculated?

Break-even revenue equals fixed costs divided by the contribution-margin ratio, where that ratio is contribution per unit divided by selling price.

Does break-even mean the business will be profitable?

No. It is an illustrative cost-volume-profit threshold based on assumed price, volume and cost behaviour. Actual mix, capacity, discounts, taxes and cost changes can alter the result.