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Break-even Calculator

Calculate the number of units or revenue required to cover your costs and start making a profit. Perfect for business planning and pricing strategy.

Break-even Inputs
₹1,000₹1,00,00,000
₹0₹10,000
₹1₹50,000

Break-even Units

1,667

units to break even

Break-even Revenue

₹83,350

total revenue needed

Contribution per Unit

₹30

profit per unit sold

Break-even Summary

Fixed Costs:₹50,000
Variable Cost/Unit:₹20
Selling Price/Unit:₹50

Contribution/Unit:₹30
Break-even Point:1,667 units
What is Break-even Point?

Break-even Definition

The point where total revenue equals total cost - no profit, no loss

Business Planning

Helps plan how many units to sell or what sales target is needed to cover costs

Formula Recap

Break-even Units = Fixed Costs ÷ (Selling Price - Variable Cost)

Key Formulas:

Break-even Units:Fixed Costs ÷ (Selling Price - Variable Cost)
Break-even Revenue:Break-even Units × Selling Price
Contribution per Unit:Selling Price - Variable Cost

Pro Tip: A lower break-even point means your business can become profitable faster. You can reduce it by increasing selling price, reducing variable costs, or optimizing fixed costs.

Break-even Calculation Formula

Step-by-Step Calculation

1

Calculate Contribution per Unit

Contribution = Selling Price - Variable Cost per Unit

2

Calculate Break-even Units

Break-even Units = Fixed Costs ÷ Contribution per Unit

3

Calculate Break-even Revenue

Break-even Revenue = Break-even Units × Selling Price

Example Calculation

Given:

Fixed Costs:₹50,000
Variable Cost per Unit:₹20
Selling Price per Unit:₹50

Calculation:

Contribution per Unit:₹50 - ₹20 = ₹30
Break-even Units:₹50,000 ÷ ₹30 = 1,667 units
Break-even Revenue:1,667 × ₹50 = ₹83,350

Formula Breakdown

Break-even Units=Fixed Costs÷(Selling Price - Variable Cost)
Break-even Revenue=Break-even Units×Selling Price
Frequently Asked Questions