Free Break-even Calculator
Find the point where your sales cover your costs. Enter your fixed costs, selling price and variable cost per unit to see the break-even units and revenue, the contribution margin, and how many units it takes to hit a target profit.
Costs that stay the same, like rent, salaries and software.
Leave blank for a plain break-even, or set a profit goal.
That is ₹2,50,000.00 in sales to cover your costs
- Contribution margin / unit
- ₹200.00
- Contribution margin %
- 40%
- Break-even units
- 500
- Break-even revenue
- ₹2,50,000.00
Handy for quick planning. Confirm the figures against your own accounts before you rely on them.
Find your break-even in four steps.
Enter your costs and price, add an optional profit goal, and read the units and revenue you need. Everything updates as you type.
Enter your costs
Put in your total fixed costs, then the selling price and the variable cost for one unit.
Add a target profit
Optional. Set a profit you want to make and see how many units it takes to get there.
Read the break-even point
See the units and the revenue you need to cover your costs, plus the contribution margin.
Copy or reuse it
Copy the full breakdown in one tap for a plan, a pitch or your records.
Costs, contribution and the break-even point.
A few ideas make break-even click. Here is what each one means and why it matters.
Fixed vs variable costs
Fixed costs stay the same whatever you sell, like rent and salaries. Variable costs go up with each unit, like materials and packing.
Contribution margin
What each sale adds after its own variable cost. Price minus variable cost per unit. This is the money that goes towards your fixed costs and then your profit.
Break-even point
The number of units, and the revenue, where total costs and total sales are equal. Below it you make a loss, above it you make a profit.
Margin of safety
How far your actual sales sit above break-even. The bigger the gap, the more room you have before you slip into a loss.
Target profit
Treat a profit goal like an extra fixed cost. Add it on top of your fixed costs and divide by the contribution margin to see the units you need.
How the break-even maths works.
The formulas behind each figure, with a worked example. The maths is the same in any currency.
Contribution margin per unit
Contribution = Price - Variable cost
Example: A ₹500 product with ₹300 of variable cost has a ₹200 contribution per unit.
Break-even units
Units = Fixed costs ÷ Contribution per unit
Example: ₹1,00,000 of fixed costs ÷ ₹200 contribution is 500 units to break even.
Break-even revenue
Revenue = Break-even units × Price
or Fixed costs ÷ Contribution margin %
Example: 500 units at ₹500 each is ₹2,50,000 of sales to break even.
Units for a target profit
Units = (Fixed costs + Target profit) ÷ Contribution per unit
Example: To make ₹40,000 profit: (₹1,00,000 + ₹40,000) ÷ ₹200 is 700 units.
Break-even that stays live.
This tool is great for a one-off plan. But if you want break-even to track your real costs and sales across a full catalogue, and tie back to your accounts as the numbers move, you want that built into your systems. That is the kind of ERP and analytics software we build at Techliphant, shaped around how your business actually works.
Pricing your products? Try the markup calculator or the profit margin calculator.
Common break-even questions.
It is the level of sales where your total costs and your total revenue are equal, so you make neither a profit nor a loss. Sell below it and you lose money, sell above it and you start to earn a profit. It is measured in units and in revenue.
Divide your fixed costs by the contribution margin per unit, which is the selling price minus the variable cost per unit. So Break-even units = Fixed costs ÷ (Price - Variable cost). For example, ₹1,00,000 of fixed costs and a ₹200 contribution per unit gives 500 units.
It is what each sale contributes after covering its own variable cost, worked out as price minus variable cost per unit. That money first pays off your fixed costs, and once those are covered, it becomes profit. You can also read it as a percentage of the price.
Fixed costs stay the same no matter how much you sell, such as rent, salaries and software. Variable costs rise and fall with each unit you make or sell, such as raw materials, packaging and payment fees. Splitting them this way is what makes a break-even calculation possible.
Add the profit you want on top of your fixed costs, then divide by the contribution margin per unit. So Units = (Fixed costs + Target profit) ÷ (Price - Variable cost). Set a target profit in the calculator and it works this out for you.
It is the gap between your actual or expected sales and your break-even sales. A wide margin of safety means sales can fall a fair amount before you make a loss, so it is a quick read on how much cushion your business has.
This tool works with your costs and prices as you enter them, before tax. If you want to plan around GST or VAT, work out your net figures first and use those. Our free GST and VAT calculators can help with that step.
Yes on both. It is free, there is no sign-up, and it runs entirely in your browser. Nothing you type is sent anywhere or saved, so your numbers stay on your own device.
It is great for a quick break-even on a product or a plan. For live costing across a full catalogue, tracking actual sales against break-even, and tying it back to your accounts, you want that built into your systems. That is the kind of ERP and analytics software we build at Techliphant.
Private by design: this calculator runs entirely in your browser, so nothing you type is uploaded or stored. It is provided free for quick estimates and educational use. For pricing and budgeting decisions, confirm the figures against your own records or accounting software.
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