All calculators / Break-even Calculator
Break-even Calculator
Work out how much you need to sell each month before the business stops losing money.
Units and revenue you need each month to cover fixed costs.
Free to run · to save projections to your live dashboard
Enter values and click Calculate to see results
Worked example
Calculated by the same engine as the calculator above.
- Inputs
- Fixed costs per month
- ₹5,00,000
- Price per unit
- ₹2,000
- Variable cost per unit
- ₹1,200
- Result
- Contribution per unit
- ₹800.00
- Contribution margin
- 40.00%
- Break-even units per month
- 625
- Break-even revenue per month
- ₹12,50,000
Formula
Break-even units = Fixed costs ÷ (Price − Variable cost per unit)
- Fixed costs = monthly costs that do not change with sales (rent, salaries, software)
- Price = selling price per unit
- Variable cost = cost per unit that rises with each sale (materials, delivery, payment fees)
- Break-even revenue = Break-even units × Price
Assumptions
- Price and variable cost per unit stay the same at every volume.
- Units are rounded up to the next whole unit.
- Taxes are not included.
- If the price is not above the variable cost, no volume breaks even.
- Educational estimate only, not financial advice. Capitallytics does not execute transactions.
Break-even Calculator FAQ
Answers about how this calculator works.
What is contribution per unit?
The price minus the variable cost of one unit. It is what each sale adds towards fixed costs and then profit.
What counts as a fixed cost?
Costs you pay each month whatever you sell, such as rent, salaries, software and insurance.
Can I use this for a service business?
Yes. Treat one unit as one client, project or billable hour, with its price and the direct cost of delivering it.
How do I lower my break-even point?
Raise the price, cut the variable cost per unit or reduce fixed costs. Each one means fewer sales are needed to break even.