Break-Even Point Calculator
Before launching a product or opening a shop, know the minimum you must sell each month to stop losing money.
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Quick answer
Break-even units = fixed costs ÷ (price per unit − variable cost per unit). The denominator is the contribution margin per unit. Break-even revenue = break-even units × price.
How to use the Break-Even Point Calculator
- Enter total fixed costs for the period (rent, salaries, subscriptions).
- Enter the selling price per unit.
- Enter the variable cost per unit (materials, packaging, shipping, fees).
- Read break-even units and revenue.
Worked example
Fixed costs ₹60,000/month, price ₹500, variable cost ₹300: contribution ₹200/unit, break-even = 60,000 ÷ 200 = 300 units (₹1,50,000 revenue).
Formula
Break-even units = Fixed costs ÷ (Price − Variable cost) Break-even revenue = Units × Price
Frequently asked questions
What if variable cost is higher than price?
Then each sale loses money and there is no break-even point; you must raise the price or cut variable cost.
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