BUSINESS TOOL

Break-Even Calculator

Find how many units you need to sell to cover your fixed and variable costs.

Calculate Your Break-Even Point

Enter your fixed costs, selling price and variable cost per unit.

Rent, salaries, software, insurance and other costs that don't change directly with unit sales.
Product cost, packaging, transaction fee or other costs that increase with each unit sold.

Break-Even Result

Break-Even Units 0
Contribution Per Unit ₹0.00
Break-Even Sales Revenue ₹0.00
Expected Sales Revenue ₹0.00
Expected Total Variable Cost ₹0.00
Estimated Profit / Loss ₹0.00
FORMULA

Break-Even Formula

Break-even occurs when total contribution covers total fixed costs.

Contribution

Selling Price − Variable Cost

Break-Even Units

Fixed Costs ÷ Contribution Per Unit

Break-Even Sales

Break-Even Units × Selling Price

EXAMPLE

Example: Small Retail Business

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.

FAQ

Break-Even FAQs

What is break-even point?

The break-even point is the sales level at which total revenue equals total costs, resulting in neither profit nor loss.

What are fixed costs?

Fixed costs are expenses that generally do not change directly with the number of units sold, such as rent or certain salaries.

What are variable costs?

Variable costs generally increase or decrease with the quantity produced or sold.

Why is break-even useful?

It helps a business understand the minimum sales volume required to cover its costs.

Important: This calculator is a simplified business planning tool. Actual break-even results can differ when businesses have multiple products, different margins, taxes, discounts, commissions, seasonal costs or changing expenses.