Find the exact sales volume needed to cover your costs — in units, in revenue, and by contribution margin — before you plan pricing or launch a product.
Enter your costs and pricing below.
| Units Sold | Total Revenue (₹) | Total Costs (₹) | Profit / Loss (₹) |
|---|
Enter your numbers and click Calculate Break-Even to see your results here.
Add your total fixed costs, your selling price per unit and your variable cost per unit.
Selling price minus variable cost tells you how much each unit contributes toward covering fixed costs.
Instantly view break-even units, break-even sales, margin of safety and a full profit/loss table.
Fixed Costs ÷ (Price − Variable Cost)
The number of units you must sell before fixed costs are fully covered.
Break-Even Units × Selling Price
The total revenue that corresponds to your break-even unit volume.
(Price − Variable Cost) ÷ Price × 100
The percentage of every sale that goes toward covering fixed costs and, beyond break-even, profit.
(Expected Units − Break-Even Units) ÷ Expected Units × 100
How much your sales can fall before you slip back into a loss.
Break-even analysis shows whether a proposed selling price actually leaves room for profit once fixed and variable costs are covered, before you commit to it.
Startups and new product lines use break-even volume to judge whether realistic sales forecasts can actually cover the fixed costs of launching.
Margin of safety quantifies how much a sales slowdown you can absorb before the business starts losing money, which is useful for lenders and investors too.
Comparing fixed versus variable costs highlights which expenses to renegotiate first if you need to lower your break-even point.
✔ Mixing fixed and variable costs together. A cost that changes with each unit sold, like packaging or a sales commission, belongs in variable cost, not fixed cost.
✔ Forgetting semi-variable costs. Utilities or part-time labor that only partly scale with volume should be split between the two categories, not dropped entirely.
✔ Using an average price when you sell at multiple price points. Blend prices using a weighted average based on your actual sales mix.
✔ Ignoring margin of safety. Reaching break-even is not the same as having a safe buffer against a slow month; always check how far above break-even your forecast sits.
✔ Treating break-even as a one-time calculation. Costs and pricing change, so break-even should be recalculated whenever either does.
The break-even point is the sales level, in units or revenue, at which total revenue equals total costs. Below it you run a loss, above it you turn a profit.
Break-even units equal fixed costs divided by the contribution margin per unit, where contribution margin per unit is the selling price minus the variable cost per unit.
Contribution margin is the amount each unit sold contributes toward covering fixed costs, calculated as selling price minus variable cost per unit.
Margin of safety shows how far your expected sales are above the break-even point, expressed as a percentage, so you know how much sales can drop before you hit a loss.
No, standard break-even analysis is based on fixed and variable operating costs only and does not factor in income tax.
Yes, replace units sold with billable hours or client engagements and use the same fixed cost and contribution margin formulas.