Calculate your break-even point, break-even sales revenue,
contribution margin and expected profit or loss.
Enter Your Business Details
Enter your fixed costs, selling price and variable cost per unit.
₹
Costs that generally remain unchanged as sales volume changes.
₹
The amount charged to the customer for one unit.
₹
Cost that changes with each additional unit sold.
Optional: units you expect to sell.
Break-Even Point
0 units
Break-Even Sales: ₹0
Contribution / Unit
₹0
Contribution Margin
0.00%
Expected Profit / Loss
₹0
Expected Sales
₹0
Break-Even Breakdown
Fixed Costs
₹0
Selling Price / Unit
₹0
Variable Cost / Unit
₹0
Contribution / Unit
₹0
Break-Even Units
0 units
Break-Even Sales
₹0
Enter your business figures and click “Calculate Break-Even” to see
your results.
What Is the Break-Even Point?
The break-even point is the level of sales where total revenue equals
total costs. At this point, the business has neither a profit nor a
loss.
Break-Even Formula
Break-Even Units = Fixed Costs ÷ (Selling Price Per Unit − Variable Cost Per Unit)
The difference between selling price and variable cost is called the
contribution margin per unit. This amount contributes toward covering
fixed costs.
Important Break-Even Metrics
Break-Even Units
The number of units that must be sold to cover fixed and variable
costs.
Break-Even Sales
The amount of revenue required to reach the break-even point.
Contribution Margin
The amount remaining from each sale after deducting its variable
cost.
Contribution Margin Formula
Contribution Margin Per Unit = Selling Price − Variable Cost
Suppose your fixed costs are ₹50,000, your selling price is ₹1,000 per
unit and your variable cost is ₹600 per unit.
Contribution = ₹1,000 − ₹600 = ₹400
Break-Even Units = ₹50,000 ÷ ₹400 = 125 units
You would therefore need to sell approximately 125 units to cover the
fixed costs and reach break-even.
How to Use the Break-Even Calculator
Enter your total fixed costs, selling price per unit and variable cost
per unit. You can also enter your expected sales volume to estimate
whether that volume would produce a profit or loss.
Frequently Asked Questions
The break-even point is the sales level at which total revenue
equals total costs. The business makes neither a profit nor a
loss at this point.
There is no contribution margin because each sale only covers its
variable cost. Fixed costs therefore cannot be recovered through
those sales, so a standard break-even point cannot be calculated.
Yes. The mathematical break-even point can be a decimal number.
Since products are normally sold in whole units, you would usually
round the required units up to the next whole unit when planning
actual sales.
A business can generally lower its break-even point by reducing
fixed costs, increasing the selling price, or reducing variable
costs per unit.
This calculator provides estimates based on the figures entered by the
user. Actual business results may differ due to taxes, discounts,
changing costs, multiple products and other business factors.
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