At the break-even point, revenue covers total costs. For a simple model with one consistent product, break-even units equal fixed costs divided by contribution per unit. Contribution per unit is the selling price less the variable cost of that unit. Source: Xero: Break-even point

Choose a meaningful unit

For a travel business, agree whether the model uses bookings, service fees or another measure. Ask the finance lead to define the income and variable costs for that unit. This avoids dividing overheads by a holiday price that includes amounts payable to suppliers.

Show the limits of the example

If fixed costs are £6,000 and each booking contributes £150 after variable costs, the model breaks even at 40 bookings. This hypothetical example assumes that contribution stays the same. Recalculate when the sales mix or costs change so the target reflects the current plan.

Written and updated by Travelgenix. Sources checked on 19 October 2026. Practical advice and examples are Travelgenix editorial guidance.