How to use the Break-Even Calculator
- Enter your fixed monthly costs (rent, salaries, bills).
- Enter your selling price per unit.
- Enter the variable cost of making or buying one unit.
- Add a target profit to see the sales needed to reach it.
How it's calculated
Show the formula
Break-even units = fixed costs ÷ (price − variable cost)
Every unit sold after that point adds its contribution to profit.
Worked example
These are the example numbers the calculator opens with. Change any of them above to see your own result.
You enter
| Fixed costs per month | Rs 3,00,000 |
|---|---|
| Selling price per unit | Rs 2,500 |
| Variable cost per unit | Rs 1,500 |
| Target profit per month | Rs 1,00,000 |
You get
| Break-even point | 300 units |
|---|---|
| Break-even sales | Rs 7,50,000 |
| Profit per unit (contribution) | Rs 1,000 |
| Contribution margin | 40% |
| Units for target profit | 400 units |
| Sales for target profit | Rs 10,00,000 |
Tips
- Lowering the variable cost per unit lowers the break-even point quickly.
- Use realistic monthly sales to check whether your plan is achievable before you start.
Frequently asked questions
What is the break-even point?
It is the sales level where income exactly covers all costs: no profit and no loss.
What are fixed and variable costs?
Fixed costs stay the same each month (rent, salaries). Variable costs rise with each unit you sell (materials, packaging, delivery).
What is contribution margin?
It is price minus variable cost: the amount each sale contributes towards fixed costs and then profit.