Business & pricing
Break-even Calculator
Find the number of units you must sell each month before you start making a profit, and how many you need for a profit target. Useful before opening a shop or launching a product.
How to use the Break-even Calculator
- Add up fixed monthly costs: rent, salaries, bills, instalments.
- Enter the selling price per unit.
- Enter the variable cost per unit (stock, packing, commission).
- Optionally set a monthly profit target.
Formula
Example
With Rs 300,000 fixed costs, a price of Rs 500 and a variable cost of Rs 300, each sale contributes Rs 200, so you need 1,500 units a month (about 50 a day) to break even.
What break-even tells you
Break-even is the point where sales exactly cover your costs. Below it you lose money, above it every sale adds profit. Knowing the number helps you set sales targets, judge whether a new shop or product can work, and see how much a rent increase really costs you.
Fixed and variable costs
- Fixed: rent, salaries, internet, software, loan instalments, security
- Variable: stock cost, packing, delivery, card or wallet fees, commission
- Semi-fixed costs like electricity can be split: a base amount as fixed, the rest as variable
Ways to lower your break-even point
Raise prices slightly, cut a fixed cost such as a second storeroom, negotiate a lower purchase price, or sell more of the products with the highest contribution margin. Even a small change in contribution per unit moves the break-even number a lot.
Related free tools
Frequently asked questions
What counts as a fixed cost?
Anything you pay whether you sell or not: rent, staff salaries, internet, loan instalments, software licences.
What is contribution margin?
It is the selling price minus the variable cost of one unit. It is the money each sale contributes towards fixed costs and profit.
How do I find break-even sales in rupees?
Divide fixed costs by the contribution margin ratio (contribution ÷ price). The calculator shows both units and rupees.
Results are estimates for planning. For tax, legal or religious decisions, confirm with a qualified person. Your inputs stay in your browser and are not sent to Soft2Cloud.