Break-Even Calculator

Find how many units you must sell before you start making money.

Enter your fixed costs, variable cost per unit and selling price. You will see the exact volume at which the business stops losing money and starts earning it.

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Rent, salaries, subscriptions — costs that do not change with volume
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Add this to see your margin of safety

The one number that matters: contribution

Contribution per unit is the selling price minus the variable cost. It is the amount each sale contributes towards paying off your fixed costs. Once total contribution equals total fixed costs, you have broken even. Every unit after that is profit.

Fixed or variable?

Rent, salaries, software subscriptions and insurance are fixed — you pay them whether you sell one unit or a thousand. Raw material, packaging, per-order shipping and payment gateway charges are variable — they scale with volume. Getting this split right matters more than getting the arithmetic right, because a misclassified cost moves the break-even point substantially.

When break-even is impossible

If your variable cost per unit is equal to or higher than your selling price, contribution is zero or negative and there is no volume that saves you. Every additional sale deepens the loss. The calculator will tell you this rather than returning a meaningless number.

Margin of safety

Enter your expected sales volume and you get your margin of safety: how far sales can fall before you slip into a loss. A thin margin of safety means a small dip in demand puts you underwater, which is worth knowing before you sign a long lease.

Frequently asked questions

What is the difference between break-even in units and in rupees?
Units tell you how many items to sell; the rupee figure tells you what revenue that represents. Use rupees when your product mix varies and a single unit is not meaningful.
How do I reach break-even faster?
Three levers: raise the price, cut the variable cost per unit, or reduce fixed costs. Raising the price has the largest effect because it widens contribution directly.
Should I include my own salary as a fixed cost?
Yes, if you draw one. A break-even point that ignores the founder's salary tells you when the business survives, not when it works.