Break-Even Calculator
Enter your fixed costs, the variable cost of each unit and the selling price. You get the number of units and the revenue where you stop losing money, and the profit at other volumes.
Break-even volume
286 units
Revenue ₹3,43,200
- Contribution per unit
- ₹700
- Contribution margin
- 58.3%
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Profit at different volumes
| Volume | Units | Revenue | Profit |
|---|---|---|---|
| 50% of break-even | 143 | ₹1,71,600 | ₹-99,900 |
| 75% of break-even | 215 | ₹2,58,000 | ₹-49,500 |
| 100% of break-even | 286 | ₹3,43,200 | ₹200 |
| 125% of break-even | 358 | ₹4,29,600 | ₹50,600 |
| 150% of break-even | 429 | ₹5,14,800 | ₹1,00,300 |
| 200% of break-even | 572 | ₹6,86,400 | ₹2,00,400 |
What break-even tells you
Each unit you sell contributes its price minus its variable cost towards covering fixed costs. That contribution is the number the break-even point depends on.
Selling below the break-even volume means a loss. Above it, each extra unit adds its full contribution to profit.
If the selling price is not higher than the variable cost, there is no break-even volume. Raising the price or cutting variable cost is the only fix.
The formula
Break-even units = fixed costs ÷ (price per unit − variable cost per unit), rounded up. Break-even revenue = break-even units × price per unit.
Common questions
How do I calculate the break-even point?
Divide your fixed costs by the contribution per unit, which is the selling price minus the variable cost. Round up to a whole unit.
What is contribution margin?
The part of each sale left after variable costs. It is what pays for fixed costs and then becomes profit.
What counts as a fixed cost?
Costs that stay the same however much you sell in the period, such as rent, salaries and subscriptions. Variable costs change with each unit, such as materials and packaging.
Does break-even include tax?
No. It is a before-tax view. Use it to compare price and cost choices.
Keep your costs in one place
SparkyExpenses tracks expenses, receipts and budgets for small businesses and teams, so the numbers behind a margin or a break-even are the real ones.
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