Calculator
Break-Even Calculator
The break-even point is the level of sales where you stop losing money and start making it — total revenue exactly covers total costs. This calculator uses your fixed costs, selling price, and variable cost per unit to find how many units (and how much revenue) you need before the business turns a profit. It is essential before launching a product, opening a location, or signing a fixed monthly commitment.
Rent, salaries, subscriptions — costs that do not change with sales.
Cost that rises with each unit sold (materials, packaging).
Revenue vs total cost (break-even where they cross)
- Revenue
- Total cost
If the contribution per unit is zero or negative (price at or below variable cost), there is no break-even point — every sale loses money. Raise price or cut variable cost first.
What your result means
- Break-even tells you how many units cover your fixed costs — every sale beyond it drops contribution straight to profit.
- A lower break-even point means a more resilient business that can survive a slow month; high fixed costs raise it.
- The fastest levers to lower break-even are raising the contribution per unit (price up or variable cost down) or cutting fixed costs.
How to use this calculator
- Add up your monthly fixed costs — rent, salaries, subscriptions, anything that does not change with sales.
- Enter the price you sell one unit for.
- Enter the variable cost of producing or buying one unit.
- Read the break-even units — the monthly sales target just to cover costs.
- Compare it to your realistic sales volume; the gap above break-even is your profit cushion.
The formula
Contribution per unit = Price − Variable cost per unit. Break-even units = Fixed costs ÷ Contribution per unit. Break-even revenue = Break-even units × Price.
Worked example
Fixed costs are ₹1,00,000/month, you sell at ₹500/unit, and each unit costs ₹300 in materials. Contribution = ₹200/unit. Break-even = 1,00,000 ÷ 200 = 500 units per month, or ₹2,50,000 in revenue. Sell 600 units and the extra 100 × ₹200 = ₹20,000 is profit; sell 400 and you are ₹20,000 in the red.
When to use it
- Validating a new product or service before launch.
- Deciding whether a new fixed cost (hire, lease) is affordable.
- Setting a minimum monthly sales target for the team.
- Testing how a price change moves the break-even point.