Break-even calculator
How much do you need to sell each month before you start making a profit? Enter your fixed costs and per-unit numbers.
The break-even formula
Contribution per unit = Selling price − Variable cost per unit
Break-even units = Fixed costs ÷ Contribution per unit
Example: fixed costs ₹60,000 a month, price ₹250, variable cost ₹170. Each unit contributes ₹80, so you need 750 units (₹1,87,500 of sales) a month to break even. Every unit after that adds ₹80 of profit.
If you sell many products, use averages: average bill value as the price, and your overall cost of goods as a share of sales for variable cost.
Three ways to lower your break-even point
- Raise contribution: better buying prices or small price increases on items customers do not compare.
- Cut fixed costs: renegotiate rent, share delivery, switch to cheaper plans.
- Change the mix: push higher-margin products. See the margin calculator.
Questions about break-even
What counts as a fixed cost?
Costs that stay the same whatever you sell in a month: rent, permanent staff salaries, loan EMIs, software subscriptions and insurance.
What is margin of safety?
How far your expected sales are above break-even, as a percentage. A 25% margin of safety means sales can fall by a quarter before you start losing money.
More tools
- GST calculatorAdd or remove GST at 0, 3, 5, 18 or 40 percent, with the CGST, SGST and IGST split.Use tool
- GST invoice generatorMake tax invoices, bills of supply, quotations and receipts with UPI QR, then print or save as PDF.Use tool
- Byaj (interest) calculatorSimple and compound interest between two dates, including rupees-per-hundred monthly rates.Use tool
- EMI calculatorMonthly instalment, total interest and a full repayment schedule for any business or personal loan.Use tool
- Margin and markup calculatorTurn cost into selling price, or price into margin, with or without GST.Use tool