Break-even Calculator
Calculate the units and revenue needed to break even.
The break-even point is where total revenue equals total costs — no profit, no loss. Every unit sold beyond break-even generates pure profit. Understanding your break-even is essential for pricing decisions, investment justifications, capacity planning, and assessing business viability. This calculator finds break-even in units and in revenue, and shows how changes in price, fixed costs, or variable costs shift the break-even point.
📋 How to Use This Calculator
Enter your fixed costs (rent, salaries, insurance — costs that do not change with output), variable cost per unit (materials, direct labour, commissions — costs that scale with each unit sold), and selling price per unit. The calculator shows break-even units, break-even revenue, contribution margin per unit, and contribution margin ratio. Use the sensitivity analysis to see how a 10% price increase or cost reduction affects break-even.
💡 Key Facts & Information
Break-even units = Fixed Costs / (Price − Variable Cost per Unit). Contribution margin = Price − Variable Cost. Contribution margin ratio = Contribution Margin / Price. Example: A food stall has fixed costs of ₹30,000/month (rent, equipment), variable cost of ₹40/plate, and sells at ₹100/plate. Contribution margin = ₹60. Break-even = 30,000 / 60 = 500 plates/month. Beyond 500 plates, every plate contributes ₹60 to profit. Indian SME context: break-even analysis is critical for new businesses — many fail because they underestimate fixed costs or overestimate volume. A common mistake is including owner's salary as profit rather than as a fixed cost.