Break-even Calculator
Starting a shop, restaurant or online business? Find out how much you need to sell each month before you start making a profit.
Updated
Formula
Break-even units = Fixed costs ÷ (Price − Variable cost per unit)
Break-even sales = Units × Price
Price minus variable cost is the contribution each sale makes towards fixed costs.
Examples
Rs 2 lakh fixed, sell at Rs 1,500, cost Rs 900
Break-even at 334 units (Rs 501,000 in sales)
Burger stall: Rs 80,000 fixed, Rs 450 price, Rs 260 cost
Break-even at 422 units (Rs 189,900 in sales)
Important information
- Fixed costs stay the same whatever you sell (rent, salaries, internet). Variable costs rise with each sale (materials, packaging, delivery).
Frequently asked questions
What is the break-even point?
The level of sales where total revenue equals total costs — no profit, no loss.
How can I lower my break-even point?
Raise prices, cut variable costs per unit, or reduce fixed costs.
What is contribution margin?
The share of each sale left after variable costs, which goes towards fixed costs and then profit.
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