Break-even Calculator

Calculate the break-even point in units and sales, and the volume needed to reach a target profit.

What is the Break-even Calculator?

The break-even point is the sales volume at which total revenue equals total costs, so profit is zero.

How does it work?

Each unit sold contributes (price − variable cost) towards fixed costs. Dividing fixed costs (plus any target profit) by this contribution gives the units required.

Formula

Break-even units = Fixed costs ÷ (Price − Variable cost per unit)

Example

With ₹2,00,000 fixed costs, a ₹500 price and ₹300 variable cost, each unit contributes ₹200, so you must sell 1,000 units (₹5 lakh in sales).

Frequently asked questions

How can I lower my break-even point?

Raise prices, cut variable costs or reduce fixed costs. Each increases contribution or reduces what must be covered.

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