Break-Even Calculator
Calculate your business break-even point — the number of units you need to sell to cover all costs.
Break-Even Point
How to use the Break-Even Calculator
- Enter your monthly (or total) fixed costs: rent, salaries, EMIs.
- Enter the selling price per unit.
- Enter the variable cost per unit: materials, packaging, commission.
- Click Calculate to see break-even units and revenue.
Formula used
Price minus variable cost is the contribution margin — the amount each sale contributes to covering fixed costs.
Worked example
Small bakery
Fixed costs ₹50,000/month; price ₹500 per cake; variable cost ₹300
Contribution per cake = ₹200
Break-even = 50,000 ÷ 200 = 250 cakes (₹1,25,000 revenue)
Using break-even to make decisions
Break-even analysis shows how changes affect risk. Raising the price to ₹550 in the example cuts break-even to 200 cakes; a rent increase of ₹10,000 pushes it to 300. Every unit sold above break-even adds the full contribution margin to profit. If break-even volume is unrealistic for your market, rethink pricing or costs before launching.
Tips for accurate results
- Include owner salary in fixed costs for a true picture.
- Payment gateway or marketplace fees are variable costs.
- Recalculate whenever prices or costs change.
Frequently Asked Questions
The sales level at which total revenue equals total costs, so profit is zero.
You can never break even; each sale increases the loss.
Multiply break-even units by the selling price.
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Content reviewed by Vinod, Easy Smart Calculator · Last updated October 2026