Break-even Calculator
Find the sales volume needed to cover costs.
About this tool
This break-even calculator estimates how many units must be sold for sales revenue to equal fixed costs plus variable costs. It assumes the selling price and variable cost per unit remain constant over the range considered.
How to use this calculator
- Enter total fixed costs for the period.
- Enter the selling price per unit and variable cost per unit.
- Calculate break-even units and the corresponding revenue. Price per unit must be greater than variable cost per unit.
Formula
Worked example
With fixed costs of ₹1,00,000, selling price ₹500 and variable cost ₹300, contribution is ₹200 per unit and break-even volume is 1,00,000 ÷ 200 = 500 units.
Frequently asked questions
What is the break-even point?
It is the sales level where total revenue equals total costs, producing neither operating profit nor loss under the assumptions used.
What is contribution per unit?
It is selling price minus variable cost per unit. It contributes toward fixed costs and then profit.
What if price is lower than variable cost?
Each additional unit would worsen the loss under the model. The calculator cannot produce a meaningful finite break-even point unless price exceeds variable cost.
Does this include tax and changes in demand?
No. It is a simplified cost-volume calculation. It assumes fixed costs, price and unit variable cost stay constant and excludes many real-world complexities.
SolveKit provides general calculations for information and planning. Results depend on the values and assumptions entered. For financial, investment, payroll or tax decisions, confirm the applicable product terms and current rules with an authoritative source or qualified professional.