Break-even Calculator
Calculate your business break-even point.
Break-Even Calculator
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Break-Even Units
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Break-Even Revenue—
Contribution Margin—
Margin Ratio—
Find how many units or how much revenue you need to cover all costs. This break-even calculator supports practical pricing and target-setting decisions.
What break-even means
Break-even point is where total revenue equals total fixed and variable costs, resulting in zero profit and zero loss.
Break-even formula
Break-even Units = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit)
The denominator is contribution margin per unit.
Examples of fixed and variable costs
- Fixed: rent, salaries, software subscriptions
- Variable: raw materials, packaging, sales commission
- Semi-variable: logistics with base + usage element
How to compute break-even
- Enter monthly fixed costs
- Enter per-unit selling price
- Enter per-unit variable cost
- Calculate break-even units and break-even revenue
- Set sales target above break-even for desired profit
Break-even example
Scenario: Fixed cost Rs 3,00,000/month, selling price Rs 1,500/unit, variable cost Rs 900/unit.
Inputs
- Fixed = Rs 3,00,000
- Contribution per unit = Rs 600
Calculation
- Break-even units = 3,00,000/600 = 500 units
- Break-even revenue = 500 x 1,500 = Rs 7,50,000
Result: Business needs at least 500 units/month to break even.
Frequently Asked Questions
Yes, use billable hours or project units instead of physical units.
Run multiple scenarios with conservative, base, and optimistic prices.
Usually analyze operational break-even before income tax.
Working capital gaps and delayed receivables can create cash stress despite accounting profit.