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Break-Even Calculator
How many units must you sell to cover your costs? Fixed and variable costs in, break-even point out.
HOW TO USE
- 1Enter your total fixed costs: rent, salaries, equipment.
- 2Enter the selling price per unit.
- 3Enter the variable cost per unit: materials, packaging, delivery.
- 4Read off the units and revenue needed to break even.
EXAMPLE
INPUT
₹50,000 fixed costs, ₹100 price, ₹60 variable cost
OUTPUT
Break even at 1,250 units or ₹1,25,000 revenue
FAQ
What are fixed and variable costs?
Fixed costs stay the same regardless of volume (rent, salaries). Variable costs scale with each unit sold (materials, packaging). Together they determine how many sales you need to survive.
What is contribution margin?
The selling price minus variable cost. The amount each sale contributes to covering fixed costs. Once fixed costs are covered, every further sale adds that margin as profit.
What if it never breaks even?
When the price is below the variable cost, every sale loses money. Raise the price or reduce variable costs. There is no sales volume that fixes a negative margin.