Break-even Calculator
Calculate units and revenue needed to cover business costs
Business Costs
₹
Rent, salaries, insurance, depreciation (costs that don't change with production)
₹
Raw materials, packaging, direct labor per unit
₹
Price you charge customers per unit
₹
Desired profit amount (leave 0 for break-even only)
Contribution Margin:
₹50.00 per unit (50.0%)
Break-even Point
2,000
Units to sell
Break-even Revenue
₹2,00,000
Cost Analysis
Selling Price per Unit₹100
Variable Cost per Unit- ₹50
Contribution Margin₹50
Contribution Margin %50.0%
Total Fixed Costs₹1,00,000
Break-even Units2,000
Cost-Revenue Analysis
Total Revenue₹2,00,000
Total Costs₹2,00,000
Fixed Costs₹1,00,000
Variable Costs (at BEP)₹1,00,000
Per Unit Economics
Revenue per Unit
₹100
Variable Cost
₹50
Contribution
₹50
Margin %
50.0%
Understanding Break-even Analysis
What is Break-even Point?
The break-even point (BEP) is where your total revenue equals total costs. You make no profit and no loss.
Key Components:
- • Fixed Costs: Expenses that don't change (rent, salaries)
- • Variable Costs: Costs per unit (materials, packaging)
- • Contribution Margin: Selling price - Variable cost
Formula: BEP = Fixed Costs ÷ Contribution Margin per Unit
Business Strategy Tips
- •Lower break-even point = Less business risk
- •Increase prices or reduce variable costs to improve margin
- •Negotiate fixed costs (rent, salaries) to lower BEP
- •Target higher contribution margin products
- •Track actual sales vs break-even regularly
- •Use for pricing decisions and product mix strategy
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