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Break-even Calculator

Calculate how many units you need to sell to cover costs

Last Updated: July 2026
Rent, salaries, insurance, etc.
Price per unit
Cost per unit (materials, labor)
Break-even Units
—
Units to cover costs
Break-even Revenue
—
Revenue at break-even
Contribution Margin
—
Per unit contribution

Break-even Analysis

Break-even Details

ComponentValue

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What Is a Break-even Calculator?

A Break-even Calculator determines the sales volume needed to cover all costs (fixed and variable) and reach zero profit. Beyond break-even, every unit sold generates profit. This is a critical metric for business planning and pricing decisions.

The chart shows revenue and total costs at different sales volumes. The intersection point is your break-even. Understanding this helps you set realistic sales targets, evaluate pricing strategies, and assess business viability.

Break-even Formula

Break-even Units = Fixed Costs / (Selling Price - Variable Cost)
Contribution Margin = Selling Price - Variable Cost
Break-even Revenue = Break-even Units × Selling Price
Fixed Costs = Rent, salaries, insuranceVariable Cost = Cost per unitSelling Price = Price per unit

Frequently Asked Questions

What is break-even point?
Break-even point is the sales volume where total revenue equals total costs (fixed + variable). At break-even, profit is zero. Beyond break-even, every additional unit sold generates profit. Below break-even, you are operating at a loss.
How to calculate break-even?
Break-even Units = Fixed Costs / Contribution Margin per Unit. Contribution Margin = Selling Price - Variable Cost. For ₹2,00,000 fixed costs, ₹500 selling price, ₹200 variable cost: BE = 2,00,000 / 300 = 667 units.
What are fixed vs variable costs?
Fixed costs remain constant regardless of sales volume (rent, salaries, insurance). Variable costs change with production volume (raw materials, direct labor, shipping). Total cost = Fixed + (Variable × Units).
How to reduce break-even point?
Reduce fixed costs (downsize office, negotiate rent), reduce variable costs (better suppliers, efficiency), or increase selling price (if market allows). Higher contribution margin means lower break-even point.
Is break-even analysis useful for services?
Yes. For services, variable costs include consultant time, travel, materials. Fixed costs include office rent, software, admin staff. Calculate break-even in billable hours or projects instead of units.

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