Break-Even Calculator – Find Your Break-Even Point

Our free Break-Even Calculator helps you determine how many units you need to sell to cover your costs. Enter your fixed costs, variable cost per unit, and selling price to instantly find your break-even point in units and revenue.

What is a Break-Even Point?

The break-even point is the level of sales at which total revenue equals total costs, resulting in zero profit or loss. Understanding your break-even point is essential for pricing decisions, business planning, and financial forecasting.

Break-Even Formula

The break-even point is calculated as follows:

BEP (units) = Fixed Costs ÷ Contribution Margin

Contribution Margin = Selling Price − Variable Cost per Unit

• Fixed Costs = Costs that do not change with production (rent, salaries)
• Variable Costs = Costs per unit that vary with production (materials, packaging)
• Selling Price = Price at which each unit is sold

Example

Fixed costs = ₹1,00,000 | Variable cost = ₹40 | Selling price = ₹90
Contribution margin = ₹90 − ₹40 = ₹50
BEP = 1,00,000 ÷ 50 = 2,000 units
BEP revenue = 2,000 × ₹90 = ₹1,80,000

Frequently Asked Questions

What are fixed costs?

Fixed costs are expenses that remain constant regardless of the volume of production, such as rent, insurance, salaries, and loan repayments.

What are variable costs?

Variable costs change with each unit produced, such as raw materials, direct labour, and packaging costs.

How can I lower my break-even point?

You can lower your break-even point by reducing fixed or variable costs, increasing the selling price, or improving operational efficiency.

Is this calculator suitable for all business types?

Yes. The break-even analysis works for product-based and service-based businesses alike, provided you can identify a clear cost structure and selling price per unit.