Break-Even Calculator
About this Break-even Calculator tool
The break-even point is the number of units you must sell so that revenue equals total costs, with no profit and no loss. Knowing it helps you set prices, plan production and decide whether a product is viable.
How to use it
- Enter your fixed costs, the selling price per unit and the variable cost per unit.
- Click Calculate.
- Read the break-even units and revenue.
Example
Break-even units = Fixed costs ÷ (Price per unit − Variable cost per unit)Fixed costs ₹50,000, price ₹250, variable cost ₹150: 50,000 ÷ 100 = 500 units, which is ₹1,25,000 in revenue.
Frequently asked questions
What are fixed and variable costs?
Fixed costs stay the same regardless of sales, such as rent. Variable costs change with each unit sold, such as materials.
What if the price is lower than the variable cost?
You lose money on every sale, so there is no break-even point. You need to raise the price or cut costs.
How can I lower my break-even point?
Reduce fixed costs, lower variable costs or raise the price.
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