Break-Even Calculator
Calculate the number of units and revenue needed to break even, given your fixed costs, price per unit, and variable cost per unit.
- Free to use
- Accurate results
- No registration required
- Works on all devices
Your result
5,000
Break-even units
AI explanation
Formula
Break-even units = Fixed costs / (Price per unit − Variable cost per unit); Break-even revenue = Break-even units × Price per unitWorked example
Fixed costs ₹5,00,000, price ₹250/unit, variable cost ₹150/unit
| Field | Value |
|---|---|
| Fixed costs | 500000 |
| Price per unit | 250 |
| Variable cost per unit | 150 |
| Break-even units | 5000 |
| Break-even revenue | 1250000 |
Assumptions
- Assumes price per unit and variable cost per unit stay constant regardless of volume (a simplified linear cost-volume-profit model).
- Price per unit must be greater than variable cost per unit, or break-even is mathematically impossible (every unit sold would lose money).
Frequently asked questions
What is the break-even point?
It's the sales volume at which total revenue exactly equals total costs — beyond that point, each additional unit sold contributes to profit.
What is "contribution margin"?
It's the price per unit minus the variable cost per unit — the amount each unit sale contributes toward covering fixed costs (and then profit, once fixed costs are covered).
What happens if price per unit is less than variable cost per unit?
Break-even becomes impossible — you'd lose money on every unit sold regardless of volume, since each sale doesn't even cover its own variable cost. This calculator rejects that input.
Related calculators
Sources
- Ministry of Micro, Small & Medium Enterprises — Udyam Registration & MSME Resources — Government of India. Effective 01-07-2020, reviewed 12-09-2026.
This calculator uses a simplified linear cost-volume-profit model and does not account for step-fixed costs, volume discounts, or non-linear pricing.
Report a calculation issue