Break-Even Calculator: How Many Units to Cover Your Costs

Enter your monthly fixed costs, the price of one unit and what each unit costs to make or buy. You see how many you must sell to stop losing money.

Break-even point

1,000units

Break-even sales
₹2,50,000
Contribution per unit
₹100.00
Contribution margin
40%
Show working
  1. 100000 ÷ (250 − 150) = 1000.00

How to use

  1. Enter fixed costs for the period: rent, salaries, EMIs, software.
  2. Enter the selling price and the variable cost of one unit.
  3. Add a target profit under More options to see the units needed for it.

Good to know

Break-even units = fixed costs ÷ (price − variable cost per unit). The gap between price and variable cost is the contribution each sale makes towards fixed costs. With ₹1,00,000 fixed costs, a ₹250 price and ₹150 variable cost, each sale contributes ₹100, so you need 1,000 units.

Break-even sales in rupees = units × price, or fixed costs ÷ contribution margin ratio. For a target profit, add it to fixed costs: (₹1,00,000 + ₹50,000) ÷ ₹100 = 1,500 units.

Keep the period the same for every figure (all monthly or all yearly) and use prices without GST. If the price is not above the variable cost you can never break even, and the calculator says so. This is an estimate for planning, not financial advice.

Questions

What is a break-even point?

The sales level where total income equals total costs: no profit, no loss.

What counts as a fixed cost?

Costs that stay the same whatever you sell: rent, salaries, loan EMIs, subscriptions, insurance.

What is a variable cost?

Costs that rise with each unit: raw material, packing, delivery, payment gateway or marketplace fees.

How can I lower my break-even point?

Raise the price, cut the variable cost per unit or reduce fixed costs. Small changes in contribution per unit have a large effect.

Can I use it for a service business?

Yes. Treat one hour, one client or one order as a "unit".

Last updated: