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Break-Even Calculator

Calculate break-even units, break-even revenue, contribution margin, and projected ROI %.

Runs in your browser. Nothing you add is uploaded.

What the Break-Even Calculator does

The break-even point is the sales volume at which your income exactly covers your costs: below it every month is a loss, above it every extra sale is profit. This calculator works it out from three numbers you already know — monthly fixed costs, the variable cost of each unit, and your selling price — and shows the break-even quantity, the break-even revenue, the contribution each unit makes, and the profit or loss at the sales volume you expect. It is the quickest way to test whether a price, a new rent or a new hire still leaves the business viable.

How to calculate your break-even point

  1. Enter your fixed costs for the period: rent, salaries, software, loan repayments — anything you pay whether you sell one unit or a thousand.
  2. Enter the variable cost per unit: materials, packaging, shipping, payment fees and commission that rise with every sale.
  3. Enter the selling price per unit, after any discount you normally give.
  4. Read the break-even units and revenue. If the price is not above the variable cost, no volume can break even and the calculator tells you so.
  5. Enter the sales volume you expect to see the resulting profit or loss and the return on the costs involved.

The Break-Even Calculator runs entirely in your browser — nothing you enter is uploaded, stored, or logged.

How it works

Break-Even Units Formula

Break-Even Units = Fixed Costs / (Price per Unit - Variable Cost per Unit)

Total fixed overhead divided by the profit margin generated per individual unit sold.

Example: 50,000 fixed costs with 80 price and 30 variable cost = 1,000 units to break even.

When to use it

Checking a price before launch

A candle maker with ₹60,000 of monthly fixed costs, ₹180 of materials per candle and a ₹450 price contributes ₹270 per candle, so needs 223 sales a month to break even. If that is more than the market can take, the price, the costs or the plan has to change before launch, not after.

Deciding whether a new cost is affordable

Adding a ₹25,000-a-month employee to the business above raises the break-even point by about 93 candles a month. Seeing the extra volume needed in units makes it easy to judge whether the hire will pay for itself.

Presenting a business plan

Lenders and investors ask how many sales it takes to stop losing money. A break-even figure built from clear fixed and variable costs answers that directly and shows you understand your own unit economics.

Good to know

  • The contribution margin (price minus variable cost) is the number to watch. Raising the price or cutting a variable cost increases it and lowers the break-even point immediately.
  • Include every per-sale cost in the variable cost: payment gateway fees of 2%, marketplace commission and returns add up and are easy to forget.
  • Break-even assumes you can sell the volume at that price. Compare the result with realistic demand, not with the capacity of your workshop.
  • Run the numbers for your best and worst months. A seasonal business can break even over the year while losing money for several months in a row.

Frequently asked questions

What does contribution margin mean?

Contribution margin is the portion of sales revenue from a single unit that remains after paying variable costs, which contributes towards covering fixed costs and generating profit.

What is the break-even formula?

Break-even units = fixed costs ÷ (selling price − variable cost per unit). Break-even revenue = break-even units × selling price, or fixed costs ÷ contribution margin ratio. The part in brackets is the contribution margin: what each sale leaves over to pay fixed costs.

Why does the calculator say I can never break even?

Because your selling price is at or below the variable cost of each unit. Every sale then loses money or makes nothing towards fixed costs, so selling more only makes the loss larger. The price has to rise or the unit cost has to fall.

Should break-even include my own salary?

Yes, if you want the business to pay you. Add the amount you need to draw as a fixed cost. Otherwise the break-even point shows when the business stops losing money, not when it supports you.
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