What is a break-even point?

The break-even point is the sales volume at which total revenue exactly equals total costs — neither profit nor loss. It is calculated as: Fixed Costs ÷ (Selling Price − Variable Cost per unit).

What is contribution margin?

Contribution margin = Selling Price − Variable Cost per unit. It represents how much each unit sold contributes toward covering fixed costs. Once fixed costs are covered, contribution margin becomes profit.

How can I lower my break-even point?

You can lower your break-even point by: (1) reducing fixed costs, (2) reducing variable costs per unit, or (3) increasing selling price. Any combination of these will reduce the number of units needed to break even.

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Break-Even Calculator

Calculate your break-even point in units and revenue. See contribution margin, profit at various sales volumes, and margin of safety.

Cost & Price Details

Fixed Costs ($)

Monthly or total — be consistent.

Variable Cost per Unit ($)

Selling Price per Unit ($)

Current Sales Units (optional — for safety margin)

Break-Even Calculator का उपयोग कैसे करें

1
Enter your total fixed costs (rent, salaries, etc.).
2
Enter variable cost per unit (materials, direct labour, etc.).
3
Enter your selling price per unit.
4
View break-even units, break-even revenue, and contribution margin instantly.
5
Optionally enter current sales volume to see your margin of safety.

Break-Even Calculator के बारे में

The Break-Even Calculator helps businesses find the exact sales volume where total revenue equals total costs — the break-even point. Above this point, every unit sold generates profit; below it, the business makes a loss.

Key Concepts

Contribution Margin = Selling Price − Variable Cost per unit. This is the amount each unit contributes toward covering fixed costs and generating profit. Break-Even Units = Fixed Costs ÷ Contribution Margin. Break-Even Revenue = Fixed Costs ÷ Contribution Margin Ratio.

Profit/Loss Table

The calculator shows projected profit or loss at 50%, 75%, 100% (break-even), 150%, and 200% of break-even volume. This helps you understand how quickly you can reach profitability with increased sales.

Margin of Safety

If you enter your current or projected sales volume, the margin of safety shows how far above the break-even point you are — the cushion before you start making a loss.