Break-even Point Calculator

Estimate sales volume needed to cover costs.

Total Fixed Costs (₹)

Rent, salaries, insurance, etc.

Variable Cost / Unit (₹)

Direct cost to produce one unit.

Selling Price / Unit (₹)

What the customer pays.

edit_note By Meet Dhameliya

update Updated: Oct 27, 2026

schedule 3 min read

Estimate the sales volume needed to cover fixed costs using a selling price and variable cost per unit. Each sale contributes price minus variable cost toward fixed costs. The tool divides fixed costs by that contribution and rounds up to the next whole unit.

lightbulb When to use this tool

check_circle Check the monthly or annual sales volume required to cover a defined set of costs.
check_circle Compare how a price change or variable-cost increase changes the minimum number of sales needed.

Inputs and results

Input: Fixed costs for one chosen period, variable cost per unit and selling price per unit. Selling price must be greater than variable cost.

Output: Whole units required to cover costs, revenue at that rounded unit count, contribution margin and a cost/revenue chart.

How it works

Choose a planning period, such as one month, and add the fixed costs for that period.

Enter the variable cost of producing or supplying one unit, then its selling price.

Calculate. Unit contribution equals price − variable cost; exact break-even units equal fixed costs ÷ unit contribution.

Use the rounded-up unit count for indivisible items. The displayed revenue is that whole-unit count multiplied by price.

Compare required units with realistic demand and capacity. A mathematically possible threshold is not evidence that customers will buy that volume.

Examples

science Whole-unit rounding creates a small surplus

Fixed costs 50,000, variable cost 200 and price 500 give contribution of 300 per unit. Exact break-even is 166.67 units, so the tool shows 167 units and sales revenue of 83,500. Costs at 167 units are 83,400, leaving 100 above the modeled costs.

science An exact whole-unit threshold

Fixed costs 12,000, variable cost 20 and price 50 give contribution of 30 per unit and a break-even point of 400 units. Revenue is 20,000, matching fixed costs 12,000 plus variable costs 8,000.

Limitations

Assumes constant prices and unit costs, sale of every unit, and one product or a representative unit with a stable sales mix. Capacity, demand, tax and financing effects are not modeled. Revenue at the rounded whole-unit threshold may produce a small surplus rather than exactly zero profit. Currency display uses INR (₹); use one consistent currency and cost period.

Frequently Asked Questions

Why does the calculator round units up? expand_more

A partial unit may not be sellable. Rounding down would leave some fixed costs uncovered, so the tool uses the next whole unit. Revenue at that point can exceed the exact algebraic break-even revenue.

What if selling price is equal to or below variable cost? expand_more

There is no positive contribution toward fixed costs. With positive fixed costs, selling more units at that price cannot reach break-even under this model. The calculator requires price to exceed variable cost.

Can I mix monthly rent with annual insurance? expand_more

First convert fixed costs to one chosen period. For a monthly calculation, use the monthly portion of annual costs and keep all other fixed costs monthly. Variable costs and selling price remain per unit.

Can this calculator estimate units needed for a target profit? expand_more

There is no separate target-profit field. Under the same assumptions, the general formula is (fixed costs + target profit) ÷ unit contribution, rounded up for whole units. Distinguish a target-profit scenario from the zero-profit threshold reported by this calculator.

privacy_tip

Processing & Privacy

Processing uses your browser rather than uploading the supplied input to a processing server. Fonts and tool libraries can make third-party network requests. Optional analytics loads after consent. See the Privacy Policy for site-wide details.