About this calculator
Enter your monthly fixed costs, the selling price per unit and the variable cost per unit. The calculator shows the units and the sales value needed to break even.
How to use it
- Enter fixed costs for a month.
- Enter the selling price per unit.
- Enter the variable cost per unit.
- Read the break-even units and sales.
The formula
Break-even units = fixed costs ÷ (price per unit − variable cost per unit)
- fixed costs
- costs that stay the same however much you sell
- variable cost
- the cost of making or buying one more unit
Worked example
Fixed costs ₹1,50,000 a month, price ₹500, variable cost ₹300
- Each unit contributes 500 − 300 = ₹200.
- Break-even = 1,50,000 ÷ 200 = 750 units a month.
- That is sales of ₹3,75,000.
What the result means
Raising the price, cutting variable cost or cutting fixed costs all lower the break-even point. The calculator lets you test each.
Assumptions
- Price and variable cost stay the same at every level of sales.
Limitations
- Taxes and financing costs are not included unless you add them to fixed costs.
- Businesses with many products need a weighted average contribution.
Frequently asked questions
What is a break-even point?
The sales level where total revenue equals total cost, so profit is zero.
How do I lower my break-even point?
Increase the price, reduce variable costs, or reduce fixed costs.
Should I include my own salary?
Yes, include it in fixed costs if the business must pay you.
Last reviewed on 1 October 2026. Found a mistake? Tell us.