Break-Even Point Calculator
Free break-even calculator. Enter fixed costs, price per unit and variable cost to get break-even units, revenue and contribution margin instantly.
About the Break-Even Point Calculator
A break-even calculator that finds how many units you must sell before total revenue covers total costs — break-even units, break-even revenue and contribution margin ratio in one go.
The break-even point is where total revenue equals total cost — sell fewer units and you lose money, sell more and every additional unit contributes pure profit toward your fixed costs and beyond. Knowing this number changes how you price, how much you dare spend on rent and salaries, and whether a product idea is viable at all.
The mechanics: every unit you sell contributes its price minus its variable cost (materials, packaging, shipping, transaction fees) toward covering fixed costs (rent, salaries, software, insurance — costs that don't change with volume). Break-even units = fixed costs ÷ contribution per unit. If your studio's fixed costs are ₹2,00,000 a month and each unit sells for ₹500 with ₹300 of variable cost, you need 1,000 units a month just to stand still — the 1,001st unit is where profit begins.
Use the calculator to stress-test decisions before making them: What if I raise the price by ₹50? What if a supplier increase pushes variable cost up 10%? What does hiring one more person (higher fixed costs) do to my required volume? The contribution-margin ratio shown alongside tells you what share of every rupee of sales is available to cover fixed costs — a quick health indicator to compare products against each other. If your variable cost is at or above your price, no volume will ever save you; the calculator will tell you that too.
How to use the Break-Even Point Calculator
- Enter your basic details in the fields provided.
- Select the appropriate options from the dropdowns.
- View your precise calculation results instantly.
Worked example
₹2,00,000 fixed costs, ₹500 selling price and ₹300 variable cost per unit → contribution ₹200/unit → 1,000 units (₹5,00,000 revenue) to break even, with a 40% contribution margin ratio.
Formula
Break-even units = fixed costs ÷ (selling price − variable cost per unit). Break-even revenue = break-even units × selling price. Contribution margin per unit = selling price − variable cost; ratio = contribution ÷ price.Frequently asked questions
- What counts as a fixed cost vs a variable cost?
- Fixed costs stay the same regardless of how much you sell — rent, salaries, insurance, software subscriptions. Variable costs scale with each unit — raw materials, packaging, delivery, payment-gateway fees. Semi-variable items (electricity, commissions) can be split between the two.
- What is contribution margin?
- Selling price minus variable cost per unit — the amount each sale 'contributes' toward fixed costs and then profit. As a ratio of price, it lets you compare the profitability structure of different products.
- How can I lower my break-even point?
- Three levers: raise the price (if the market allows), cut variable cost per unit (better sourcing, packaging), or cut fixed costs (cheaper premises, leaner payroll). Small changes in contribution per unit often move the break-even volume dramatically.
- Is my financial data secure?
- Absolutely. All calculations happen entirely in your browser and none of your inputs are saved or sent to any server.
- Can I use this for official tax filing?
- While highly accurate for planning and estimation, always consult your CA or tax professional for final official filings.
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