METHOD & GUIDANCE
How this calculation works
Enter figures from the same period and on a consistent VAT-inclusive or VAT-exclusive basis. Tool IQ recalculates every output immediately; nothing you enter is saved or sent to us.
How to use the result
Begin with the most likely case, then test a cautious case by increasing costs or reducing sales. Change one assumption at a time to reveal which input has the greatest effect.
Worked example
The calculator opens with a complete example. Review the relationship between its headline answer and four supporting metrics, then replace each figure with your own. Keep the example in a second tab for a quick comparison.
Common mistakes
- Mixing revenue that includes VAT with costs that exclude it.
- Leaving payment fees, delivery, returns or non-billable time out of costs.
- Using an optimistic sales forecast as the only scenario.
- Confusing markup with profit margin—they use different denominators.
Frequently asked questions
Is this calculator free?
Yes. It requires no account and stores no calculation inputs.
Can I use the answer for a formal filing?
No. It is a planning estimate, not accounting, tax, legal or investment advice. Confirm material decisions with a qualified professional.
Should I include VAT?
Use a consistent basis throughout. Businesses that recover input tax commonly model net figures; consumer-facing prices are often considered gross.
Continue the decision
- Break-even Calculator — Find the sales volume needed to cover every cost.
- VAT Calculator — Add or remove VAT with a transparent breakdown.
Method reviewed 26 July 2026. Figures are illustrative and calculated locally in your browser.