Break-even calculator

The break-even point is the level of sales where a business neither makes nor loses money. Below it you lose, above it you start to profit.

Enter your fixed costs, the price and the cost of each unit. We tell you how much to sell to cover costs and to hit your goal.

How it's calculated

Contribution margin = price − variable cost per unit.
Break-even units = fixed costs ÷ contribution margin, rounded up.
Break-even sales = fixed costs ÷ (contribution margin ÷ price).
For a target profit, add it to fixed costs and run the same math.

An example

With Rs 200,000 in fixed costs, a price of Rs 2,000 and a variable cost of Rs 1,500, each sale leaves Rs 500.

You need to sell 400 units (Rs 800,000) to cover costs, and 560 to make Rs 80,000 a month.

Frequently asked questions

What are fixed and variable costs?

Fixed costs stay the same even if you sell nothing: rent, fixed salaries, utilities. Variable costs grow with each sale: stock, materials, commissions, shipping.

How do I lower my break-even point?

There are three levers: raise the price, cut the variable cost per unit or trim fixed costs. Price usually moves the needle the most.

Does it work for a service business?

Yes. A unit can be an hour, a session or a client per month. Use what it costs you to deliver each one as the variable cost.

Key terms

Break-even point: The sales level where revenue equals costs.
Contribution margin: What each sale leaves to pay fixed costs.

The same calculation in other countries

Up-to-date official data

We check the official sources automatically, every day.

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