Break-Even Calculator
Calculate your business break-even point in units and revenue. Enter fixed costs, variable cost per unit, and selling price to find when your business starts making profit.
Break-Even Calculator
Break-even units, revenue, and margin of safety for your business
Rent, salaries, EMIs, utilities, software, insurance — costs that don't change with sales
Price at which you sell one unit/item/service
Raw material, packaging, delivery, commission per unit sold
Your projected or current monthly sales volume
Break-even assumes constant pricing and variable costs. Real businesses have mixed cost structures — use this as a planning guide.
Most new businesses underestimate fixed costs and overestimate sales. A restaurant with Rs 3 lakh monthly fixed costs (rent, salaries, utilities) and Rs 300 contribution per customer needs 1,000 customers just to break even — that's 33 customers every day. Calculate your break-even before you spend a rupee on setup.
Break-Even Analysis — The Foundation of Business Pricing
The break-even point is the sales level where your business makes neither profit nor loss. Every rupee earned above this point is profit. Understanding your break-even is critical before setting prices, taking a loan, hiring staff, or expanding. The formula: Break-Even Units = Fixed Costs ÷ (Selling Price − Variable Cost per Unit).
Margin of safety — your profit buffer
The margin of safety is the gap between your expected sales and the break-even point. If you expect to sell 800 units and break-even is 500 units, your margin of safety is 300 units (37.5%). A margin of safety above 25% is generally considered healthy. Below 10%, your business is highly vulnerable to a small drop in sales or a price increase from suppliers.