Break-Even Calculator
Units and sales you need each month to cover costs, plus margin of safety and target profit.
₹1.5 lakh. Rent, salaries, EMIs: costs that don't change with sales.
Variable cost: materials, packaging, delivery, commission and fees for each unit sold.
For profit and margin of safety.
Shows the sales you need to earn it.
- Contribution per unit
- ₹20040% of the price goes to fixed costs and profit
- Break-even sales
- ₹3,75,000
- Profit at 1,000 units
- ₹50,000on sales of ₹5,00,000
- Margin of safety
- 25%sales can fall 250 units (₹1,25,000) before a loss
- Sales for ₹1,00,000 profit
- 1,250 units a month₹6,25,000 of sales
Break-Even Calculator FAQ
How do I calculate the break-even point?
Break-even units = fixed costs ÷ (selling price − variable cost per unit). With ₹1,50,000 of fixed costs a month, a ₹500 price and a ₹300 variable cost, you break even at 750 units, or ₹3,75,000 of sales.
What is contribution margin?
It is what each sale leaves after its own variable cost: selling price minus variable cost. That amount first pays fixed costs and then becomes profit.
What is the margin of safety?
How far sales can fall before you make a loss: (expected sales − break-even sales) ÷ expected sales. A 25% margin means sales can drop by a quarter before profit turns into a loss.
Why does it say my business never breaks even?
Because the selling price is not above the variable cost per unit, so every sale adds to the loss and selling more cannot cover fixed costs. Raise the price or cut the variable cost.
Is my business data uploaded?
No. The calculator runs in your browser and nothing is saved or sent anywhere.