How much do you need to sell to break even?
Enter fixed costs, the selling price and the variable cost per unit. See the break-even point and the units for a target profit.
Your numbers
Example numbers are filled in. Replace them with yours.
Rent, salaries and other costs that do not change with sales.
Materials, packing, commissions: costs that rise with each unit.
Optional, for the margin of safety.
Optional.
Break-even point
500 units
Fixed costs ÷ (price − variable cost)
Below the break-even point you make a loss; above it, each extra unit adds the contribution per unit to profit.
- Break-even revenue
- ₹2,50,000
- Contribution per unitPrice − variable cost.
- ₹200
- Contribution margin
- 40%
- Units for your target profitRevenue ₹3,75,000
- 750 units
- Margin of safetyHow far sales can fall before you stop covering costs.
- 37.5%
Open shows cash across every bank, so you can see the runway behind the plan this calculator sets out.
A calculation for planning, not accounting, tax or investment advice. It uses only the numbers you enter, and everything is calculated in your browser: nothing you type leaves it.
Questions about this tool
How is break-even calculated?
Break-even units = fixed costs ÷ (selling price − variable cost per unit). The difference between price and variable cost is the contribution each unit makes towards fixed costs.
What is the margin of safety?
(Units you sell now − break-even units) ÷ units you sell now. It shows how far sales can fall before you stop covering your costs.
What counts as a fixed or a variable cost?
Fixed costs stay the same however much you sell, such as rent and salaries. Variable costs rise with every unit, such as materials, packing and sales commissions.
What if the price is below the variable cost?
Then every unit loses money and there is no break-even point. The calculator tells you so instead of showing a number.
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