Break-Even Calculator
Units needed to cover fixed costs.
Inputs
This calculator is for general information only and isn't financial advice. Rates, tax rules, and your actual eligibility depend on your specific situation — check with your bank or a qualified advisor before acting on it.
Formula
Break-even units = Fixed costs / (Price per unit − Variable cost per unit)
Each unit sold contributes (Price − Variable cost) toward covering fixed costs. Once total contribution equals fixed costs, you've broken even — every additional unit sold after that contributes to profit.
Worked example
With ₹50,000 in fixed costs, a ₹500 selling price, and ₹300 variable cost per unit, each sale contributes ₹200 toward overhead — break-even at 250 units (rounded up from 250.0). Sell unit 251 and you're into profit territory.
Where this can give the wrong answer
- If price equals or falls below variable cost, contribution margin is zero or negative and break-even is impossible — the calculator returns an error.
- Fixed costs of zero give a break-even of zero units, which is mathematically correct but rarely meaningful in a real business.
- This is single-product, single-price static analysis — volume discounts, step-fixed costs, and mixed product lines aren't modelled.
FAQ
- You can't sell a fraction of a unit in most businesses — 250.1 units needed means you must sell 251 to fully cover fixed costs. The calculator reports the ceiling for that reason.