Break-even Calculator

A Break-even Calculator helps determine the minimum number of units a business must sell to cover all its costs. At the break-even point, total revenue equals total expenses, meaning there is no profit or loss.

Understanding the break-even point is essential for pricing decisions, cost control, and business planning. It allows you to estimate sales targets and evaluate whether a product or business model is viable.

How Break-even Point is Calculated

The break-even formula is: Break-even Units = Fixed Cost / (Price per Unit − Variable Cost per Unit).

Fixed costs remain constant regardless of sales volume, while variable costs change based on the number of units produced or sold.

Example of Break-even Calculation

If your fixed cost is ₹50,000, selling price per unit is ₹200, and variable cost per unit is ₹120, then your break-even point is 625 units. Selling beyond this point generates profit.

Why Break-even Analysis Matters

Break-even analysis helps businesses set realistic pricing, control costs, and understand financial risk. It is widely used in startups, retail, manufacturing, and service-based businesses.

To estimate monthly loan payments for business expansion, you can also use our EMI Calculator.