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Break-Even Point Calculator

How much do you need to sell before you stop losing money? Enter your price, costs and fixed overheads to see your break-even point in both units and revenue, and exactly where the lines cross.

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Your inputs
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₹
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Break-even point
Almost there
800 units
Sell 800 units a month to cover all your costs
Break-even revenue
₹9.6 L
Contribution margin
₹750
Margin ratio
63%
Loss at current sales
−₹1.5 L
Cost structure at break-even
Fixed versus variable at that volume
₹9.6L
BE revenue
Fixed costs63%
Variable costs38%
Profit at different volumes
Where profit turns positive
−₹3 L
₹0
₹3 L
₹6 L
50%
400u
100%
800u
150%
1,200u
200%
1,600u
Revenue versus total cost
The point where the lines cross is break-even
Revenue
Total cost
04008001,2001,600
Break-even at 800 units
How this calculator works

Fixed costs over contribution margin

Each sale leaves a contribution margin after variable costs. Divide your fixed costs by that margin and you get the units you must sell to break even.

The formulas
Contribution margin
Price − Variable cost per unit
Break-even units
Fixed costs ÷ Contribution margin
Break-even revenue
Fixed costs ÷ Contribution margin ratio
Profit
Units × Contribution margin − Fixed costs
Every field explained

What each input actually means

Selling price per unit
What a customer pays for one unit of your product or service. The starting point for contribution margin.
Variable cost per unit
The cost that rises with each unit sold, such as materials, payment fees or fulfilment. Subtracted from price.
Fixed costs per month
Costs that stay the same whatever you sell, like rent, salaries and software. This is the total you must cover.
Units sold now per month
Your current monthly sales volume. We use it to show your current profit or loss and how far you are from break-even.
Benchmarks

What margin ratio should you aim for?

Contribution margin ratio shapes how quickly you reach break-even, and it varies a lot by business model.

Margin ratio above 60%
Typical of software and digital products. Most of each sale covers fixed costs, so break-even comes quickly.
Margin ratio 30 to 60%
Common for many product and service businesses. Healthy, but volume and fixed-cost discipline both matter.
Margin ratio 10 to 30%
Thin, as seen in retail and low-margin goods. You need high volume, so watch fixed costs closely.
Margin ratio below 10%
Very tight. Small cost increases or discounts can push you into a loss. Consider pricing or product changes.
Questions, answered

Break-even FAQ

The break-even point is the level of sales at which your total revenue exactly covers your total costs, so you make neither a profit nor a loss. Beyond it, every additional sale contributes to profit.
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