Break-Even Calculator
Find the units and revenue needed to cover all costs
Free break-even calculator. Enter fixed costs, variable cost per unit, and selling price to see break-even units, revenue, contribution margin, and margin of safety.
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What is a Break-Even Calculator?
Break-even analysis tells you the minimum sales volume needed for your business to cover all costs — the point where total revenue equals total cost and profit is zero. Below break-even you are making a loss; above it, every additional unit sold generates profit equal to the contribution margin.
The break-even formula is straightforward: Break-even units = Fixed Costs ÷ Contribution Margin per unit. Contribution Margin = Selling Price − Variable Cost per unit. Fixed costs are costs that don't change with volume (rent, salaries, subscriptions, insurance). Variable costs scale with output (raw materials, packaging, payment processing fees, delivery costs).
The Margin of Safety measures how far your current sales are above break-even, as a percentage. A 30% margin of safety means your sales would have to drop 30% before you hit a loss — a useful buffer for seasonal businesses or volatile markets. This calculator also shows monthly profitability at your current sales volume.
Why use this Break-Even Calculator
Built for Indians, by Indians. Every number, every formula, every slab — tuned to FY 2026-27 reality.
Break-even units & revenue
Instant break-even point in units sold per month and the matching revenue target.
Margin of safety
Shows how much your current volume exceeds break-even — your buffer before loss.
Visual profit split
Donut chart shows profit vs fixed costs vs variable costs at current volume.
Live updates
All metrics recalculate instantly as you move sliders.
Using the Break-Even Calculator in 4 steps
No onboarding, no signup. Answer three fields and the numbers update live.
Enter monthly fixed costs
All costs that don't vary with sales volume: rent, salaries, software subscriptions, insurance, depreciation.
Enter variable cost per unit
Cost directly tied to producing one unit: raw materials, packaging, shipping, payment gateway fees (per transaction).
Enter selling price per unit
Your actual selling price — net of discounts. Price must exceed variable cost to have a positive contribution margin.
Set current monthly units
How many units you currently sell (or plan to sell). The margin of safety and profit are calculated at this volume.
Tips to get the most out of it
Revisit your break-even analysis monthly. As you add headcount or sign new leases, fixed costs rise — the break-even point shifts up. Know it at all times.
Segment break-even by product line if you sell multiple products at different margins. A weighted average contribution margin tells you the blended break-even across your mix.
Payment gateway fees (1.5–3%) and return/refund rates are easy-to-miss variable costs for e-commerce. Including them gives a realistic break-even.
Aim for a margin of safety above 25% before committing to major new fixed costs (hiring, expansion). Below 15%, one bad month can push you into loss.
To reduce break-even point: lower fixed costs (renegotiate rent, cut unused SaaS), increase price (even ₹50 higher on a ₹500 product drops break-even dramatically), or reduce variable cost (renegotiate supplier contracts).
Real-world scenarios
How Indians actually use this calculator — concrete inputs, concrete outcomes.
Food delivery cloud kitchen
Fixed: ₹3L (rent + staff). Variable per order: ₹120 (food + packaging + delivery). Price per order: ₹300. CM: ₹180. Break-even: 1,667 orders/month. At 2,500 orders → profit ₹1.5L + margin of safety 50%.
SaaS product (annual plan)
Fixed: ₹10L (team + infra). Variable per subscription: ₹500 (payment gateway + support). Price: ₹5,000/year. CM: ₹4,500. Break-even: ~222 subscriptions. At 500 → profit ₹12.5L/year.
Textile manufacturer
Fixed: ₹15L/month (factory + staff). Variable per piece: ₹280 (fabric + labour). Selling price: ₹500. CM: ₹220. Break-even: 6,818 pieces. At 10,000 pieces → profit ₹7L.
Frequently Asked Questions
Still have a question? Our team replies within a business day.
Contribution Margin (CM) = Selling Price − Variable Cost per unit. It represents how much each unit sold "contributes" to covering fixed costs and eventually generating profit. Once fixed costs are covered (at break-even), each additional unit generates CM as pure profit.
Margin of Safety = (Current Sales Volume − Break-even Volume) ÷ Break-even Volume × 100. It tells you how much sales can fall before you make a loss. A 30% margin means sales would need to drop 30% before you reach zero profit.
Yes. Break-even Revenue = Fixed Costs ÷ Contribution Margin%. This calculator shows both — break-even units multiplied by selling price gives the break-even revenue.
You have a negative contribution margin — every unit sold increases your loss. No volume of sales will cover fixed costs. You must either raise price or cut variable cost before the business model is viable.
No — standard break-even analysis uses pre-tax figures. For a post-tax break-even, divide fixed costs by (1 − tax rate) before calculating. For most early-stage businesses with losses, this adjustment is irrelevant.
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