Break-Even Calculator
Find the break-even point in units and revenue for your business.
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Break-Even Calculator
Use the formula and worked example below to calculate manually.
Overview
The break-even calculator determines the number of units you must sell (or the revenue you must generate) to cover all your costs — the point where you neither make a profit nor incur a loss.
How to use this calculator
- Enter your total fixed costs (rent, salaries, loan EMIs — costs that don't change with sales).
- Enter the selling price per unit.
- Enter the variable cost per unit (materials, commissions — costs per unit sold).
- The calculator shows the break-even quantity and the corresponding revenue.
Understanding the inputs & results
Fixed costs
Costs that remain constant regardless of production volume — rent, insurance, salaries.
Variable costs
Costs that change with the number of units produced or sold — raw materials, packaging, commissions.
Contribution margin
Selling price minus variable cost per unit. Each unit sold contributes this amount toward covering fixed costs.
Break-even point (units)
The number of units where total revenue equals total costs.
Break-even revenue
Break-even units × selling price.
The formula
Break-even analysis
BEP (units) = Fixed Costs / (Selling Price − Variable Cost per unit)
Divide fixed costs by the contribution margin (price minus variable cost) to get the number of units needed to break even. Revenue at BEP = BEP units × selling price.
Worked example
Fixed costs ₹1,00,000/month. Selling price ₹500. Variable cost ₹300.
- Contribution margin = 500 − 300 = ₹200.
- BEP = 1,00,000 / 200 = 500 units.
- BEP revenue = 500 × 500 = ₹2,50,000.
✓ Break-even at 500 units sold, generating ₹2.5 lakh in revenue.
Frequently asked questions
Break-even analysis is a planning tool. Actual business performance depends on market demand, competition, and operational execution.