Finance · Free tool
Break-Even Calculator
Break-even = (Fixed costs) ÷ (Price − Variable cost per unit). Below this, you lose money. Above, you profit. Useful for pricing, capacity planning, and go/no-go decisions.
₹5,00,000
₹1,000
₹400
Break-even units
834
Contribution margin / unit₹600
Break-even revenue₹8,33,333
FAQ
What if I have multiple products?
Use weighted average contribution margin: ((Margin × Mix) summed) / 1. Then break-even = Fixed costs / weighted avg. Each product's break-even units = Total BE × that product's sales mix.
Variable cost per unit unclear — how to estimate?
Track all costs that scale with output: raw material, direct labour, packaging, freight per unit, payment gateway fees. Exclude rent, salaries, overhead — those are fixed.
Below break-even but I see profit — how?
You probably miscounted fixed vs variable costs. Or are using gross margin instead of contribution margin. Re-examine your variable cost composition.