Break-Even Point Calculator
Find how many units you must sell to cover your costs — break-even units, revenue, contribution margin and the sales needed to hit a target profit, live.
- Free — no sign-up
- Instant, on-screen results
- Built by our CA · CS team
- Rules cited on the page
Enter your figures — the result on the right updates as you type.
Break-even breakdown
Get a CA to model your break-even & pricing
We help you price products, control costs and plan for a profitable margin of safety.
Disclaimer: Indicative estimate based on a single product with constant selling price and variable cost. Real break-even also depends on product mix, stepped fixed costs, taxes and discounts.
How break-even point is calculated
Break-even point (BEP) is the sales level where total revenue exactly equals total cost — you make neither profit nor loss. The key is contribution: the part of each unit's price that is left after paying its variable cost, which then goes towards covering fixed costs.
Worked example
Suppose your fixed costs are ₹1,00,000 a month, you sell each unit for ₹500, and each unit costs ₹300 to make and deliver.
Key terms explained
Fixed vs variable cost
Fixed costs stay the same no matter how much you sell — rent, salaries, insurance, loan EMIs. Variable costs rise with each unit — raw material, packing, per-unit freight and sales commission.
Contribution margin
The share of each sale left after variable costs — selling price minus variable cost. It first covers fixed costs; once they're paid, the whole contribution of every extra unit becomes profit.
Break-even point
The exact sales level — in units or rupees — where contribution equals fixed costs, so profit is zero. Below it you make a loss; above it, profit. It falls when you cut costs or raise price.
Margin of safety
How far actual sales are above break-even — (actual − break-even) ÷ actual. A high margin of safety means sales can drop a lot before you start losing money; a low one is risky.
Questions people ask
Short answers on Break-Even Point Calculator. Tap a question to open it.
01What is the break-even point?
The level of sales at which total revenue equals total cost, so profit is exactly zero. Below it you make a loss; above it, every additional unit contributes to profit.
02How is break-even calculated?
Break-even units = fixed costs ÷ (selling price per unit − variable cost per unit). The denominator is the contribution per unit. Multiply the units by the selling price to get break-even revenue.
03What counts as a fixed cost and what as a variable cost?
Fixed costs stay the same whatever you sell — rent, salaries, insurance, software subscriptions. Variable costs move with volume — raw material, packing, freight, payment gateway charges and sales commission.
04What is a margin of safety?
The gap between your actual (or budgeted) sales and the break-even point, usually shown as a percentage. It tells you how far sales can fall before you start losing money.
05How do I lower my break-even point?
Raise the selling price, cut the variable cost per unit, or reduce fixed costs. Improving contribution per unit moves break-even down faster than shaving fixed costs by the same rupee amount.
More Finance & Registration tools
Picked from the same shelf. Every tool is free and runs in your browser.
Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.