Break-even Calculator

The break-even point is the number of units you must sell for total revenue to equal total costs, so profit is zero. Below it you make a loss, above it you make a profit.

Divide fixed costs by the contribution margin per unit, where contribution margin = price per unit − variable cost per unit. For example, ₹10,000 fixed costs ÷ ₹20 contribution = 500 units.

Contribution margin per unit is the selling price minus the variable cost per unit. It is the amount each sale contributes toward covering fixed costs and, after break-even, toward profit.

If the price per unit is less than or equal to the variable cost, the contribution margin is zero or negative, so you can never cover fixed costs. In that case break-even is impossible and shows as N/A.