Find how many units you need to sell to cover your fixed and variable costs.
Enter your fixed costs, selling price and variable cost per unit.
Break-even occurs when total contribution covers total fixed costs.
Selling Price − Variable Cost
Fixed Costs ÷ Contribution Per Unit
Break-Even Units × Selling Price
Fixed costs = ₹1,00,000
Selling price = ₹1,000 per unit
Variable cost = ₹600 per unit
Contribution = ₹400 per unit
Break-even = ₹1,00,000 ÷ ₹400 = 250 units
Therefore, the business needs to sell approximately 250 units to cover the fixed costs.
The break-even point is the sales level at which total revenue equals total costs, resulting in neither profit nor loss.
Fixed costs are expenses that generally do not change directly with the number of units sold, such as rent or certain salaries.
Variable costs generally increase or decrease with the quantity produced or sold.
It helps a business understand the minimum sales volume required to cover its costs.
Explore our other free tools for profit, pricing, discounts, markup and invoices.
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