Break-Even Calculator

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Fixed Costs (rent, salaries, etc. per month)

Variable Cost per Unit

Selling Price per Unit

Break-Even Point334 units

Break-Even Revenue₹1,00,000

Contribution Margin / Unit₹150.00

Contribution Margin %50.0%

Total CostRevenue

Where the two lines cross is your break-even point — sell fewer units than that and you're operating at a loss.

This is an estimate based on standard financial formulas and the numbers you enter — it doesn’t account for every fee, tax rule, or lender-specific term, and isn’t a substitute for advice from a qualified financial professional. Read the full disclaimer.

Know Exactly How Much You Need to Sell

Before a product or service turns a profit, it first has to cover its fixed costs. This tool calculates exactly how many units (or how much revenue) that takes, from your fixed costs, variable cost per unit, and selling price — and charts the cost and revenue lines together so the crossing point is immediately visible.

How to Use This Tool

1Enter your fixed costsRent, salaries, and other costs that don't change with how much you sell.
2Enter your variable cost per unitWhat it costs you to produce or deliver one unit.
3Enter your selling price per unitWhat you actually charge the customer.
4Read the break-even pointIn both units and revenue, plus a chart showing exactly where cost and revenue cross.

Good to Know

Contribution margin (price minus variable cost) is the amount each sale actually contributes toward covering your fixed costs — it's the number that determines how fast you reach break-even.
Selling below your variable cost per unit means you lose money on every single sale, no matter how many you sell — the tool flags this directly instead of showing a nonsensical result.
The chart is centered around your break-even point specifically, so the crossing point is always clearly visible regardless of your numbers.
This works for any unit-based business — a product, a service billed per session, or a freelance project priced per deliverable.

The Break-Even Formula

Break-Even Units = Fixed Costs / (Price − Variable Cost)

Fixed Costs — costs that don't change with volume (rent, salaries, insurance)

Price — what you charge per unit

Variable Cost — cost per unit (materials, direct labor)

(Price − Variable Cost) is your contribution margin per unit

Example: ₹50,000 in fixed costs, ₹150 variable cost, ₹300 price → contribution margin = ₹150/unit, break-even = 50,000 / 150 ≈ 334 units (₹1,00,000 in revenue).

Frequently Asked Questions

What exactly is contribution margin?

It's your selling price minus your variable cost per unit — the amount each sale actually contributes toward covering fixed costs before you start generating profit. A higher contribution margin means you reach break-even with fewer sales.

What happens if my variable cost is higher than my price?

You'd lose money on every unit sold, and there's no break-even point at any sales volume — the calculator flags this directly since it means the pricing itself needs to change first.

Does this account for taxes on profit?

No — this is a pure cost/revenue break-even calculation, without any tax layered on top.

Who is this tool actually for?

Freelancers and small business owners figuring out minimum viable pricing or sales volume — it pairs naturally with the Invoice Maker for the same small-business audience.