Break-even Calculator
Units and revenue needed to cover fixed costs, with contribution margin, target profit and a cost–revenue chart.
About Break-even Calculator
This free break-even calculator shows how many units you must sell, and how much revenue you need, to cover your costs. Enter your fixed costs for the period, such as rent, salaries and EMIs, and the variable cost and selling price per unit.
The calculator shows the break-even point in units and rupees, the contribution margin per unit, and a cost–revenue chart where the lines cross. Add a target profit to see the sales needed to earn it, and your expected sales to see the margin of safety. It is a quick break-even analysis for business plans and pricing, calculated in your browser.
How to use Break-even Calculator
- Enter your fixed costs for the period (rent, salaries, EMIs).
- Enter variable cost and selling price per unit.
- Optionally add a target profit and expected sales to see the margin of safety.
Frequently asked questions
What is the break-even formula?
Break-even units = Fixed costs ÷ (Price − Variable cost per unit). Price minus variable cost is the contribution per unit.
How do I include a profit target?
Units needed = (Fixed costs + Target profit) ÷ Contribution per unit.
What is the margin of safety?
How far expected sales can fall before you make a loss: (Expected sales − Break-even sales) ÷ Expected sales.
What is the break-even point?
It is the level of sales at which total revenue equals total costs, so there is neither profit nor loss.
What is contribution margin?
Selling price minus variable cost per unit. It is the amount each sale contributes towards fixed costs and then profit.
How is break-even revenue calculated?
Break-even revenue = Fixed costs ÷ Contribution margin ratio, where the ratio is contribution per unit ÷ selling price.
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