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PakCalc

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

PKR
PKR
PKR

Result

334 units

Break-even at 334 units (Rs 501,000 in sales)

Break-even sales revenue
Rs 500,000 (5 lakh)
Contribution per unit
Rs 600
Contribution margin
40%

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.