Break-even Calculator
📊
Break-Even Calculator
Find out exactly how many sales your business needs to start making profit
₹
₹
₹
Break-Even Point
—
units per month
📈 Profit/Loss at Different Sales Levels
| Units Sold | Revenue | Total Cost | Profit/Loss |
|---|
🕐 History
ℹ️ How Does This Tool Work? ▼
The Break-Even Calculator tells you the minimum number of units you need to sell (or the minimum revenue you need to earn) each month so your business neither makes a profit nor a loss. This point is called the Break-Even Point. Every sale beyond this point is pure profit!
Break-Even (Units) = Fixed Costs ÷ (Selling Price − Variable Cost per Unit)
Break-Even (Revenue) = Fixed Costs ÷ Contribution Margin Ratio
Contribution Margin = Selling Price − Variable Cost per Unit
Contribution Margin Ratio = Contribution Margin ÷ Selling Price × 100
Break-Even (Revenue) = Fixed Costs ÷ Contribution Margin Ratio
Contribution Margin = Selling Price − Variable Cost per Unit
Contribution Margin Ratio = Contribution Margin ÷ Selling Price × 100
💡 Tips for Best Results ▼
• Fixed Costs include rent, staff salaries, electricity bills, insurance — costs that remain the same every month regardless of sales volume.
• Variable Costs include raw materials, packaging, and delivery charges — costs that increase with each unit produced or sold.
• If your Break-Even point seems too high, try reducing variable costs or increasing your selling price — even a small change can make a big difference.
• A higher Contribution Margin means you recover fixed costs faster and start earning profit sooner!
• Use the Expected Sales field to instantly see if your business is currently profitable, at break-even, or running at a loss.
• Variable Costs include raw materials, packaging, and delivery charges — costs that increase with each unit produced or sold.
• If your Break-Even point seems too high, try reducing variable costs or increasing your selling price — even a small change can make a big difference.
• A higher Contribution Margin means you recover fixed costs faster and start earning profit sooner!
• Use the Expected Sales field to instantly see if your business is currently profitable, at break-even, or running at a loss.
❓ Frequently Asked Questions ▼
Q: When should I use Units Mode vs Revenue Mode?
Use Units Mode when you sell physical products and can count units (e.g., clothes, food, gadgets). Use Revenue Mode for service businesses where counting units is difficult (e.g., consulting, freelancing, salons).
Q: What happens after crossing the Break-Even point?
Once you cross Break-Even, your fixed costs are fully recovered. Every additional unit sold beyond that point generates profit equal to the Contribution Margin per unit — this is where real earnings begin!
Q: Can I use this for multiple products?
Yes! Use the weighted average selling price and variable cost across all your products to get an overall break-even estimate for your business.
Q: How often should I recalculate break-even?
Recalculate whenever costs change — such as rent increases, new hires, or changes in raw material prices. Regular review keeps your business financially healthy.
Use Units Mode when you sell physical products and can count units (e.g., clothes, food, gadgets). Use Revenue Mode for service businesses where counting units is difficult (e.g., consulting, freelancing, salons).
Q: What happens after crossing the Break-Even point?
Once you cross Break-Even, your fixed costs are fully recovered. Every additional unit sold beyond that point generates profit equal to the Contribution Margin per unit — this is where real earnings begin!
Q: Can I use this for multiple products?
Yes! Use the weighted average selling price and variable cost across all your products to get an overall break-even estimate for your business.
Q: How often should I recalculate break-even?
Recalculate whenever costs change — such as rent increases, new hires, or changes in raw material prices. Regular review keeps your business financially healthy.