Break-Even Calculator (units & revenue)

How it works

Break-even point in units = Fixed Costs ÷ (Selling Price − Variable Cost per unit). The denominator is the per-unit contribution margin — what each sale contributes towards fixed costs. Below the break-even, every additional unit reduces your loss; above it, every unit is profit. Break-even revenue = break-even units × selling price. For multi-product businesses, use the weighted-average contribution margin in proportion to your product mix.

Worked example

A Bangalore cloud-kitchen owner running a biryani shop: fixed costs ₹1,80,000/month (rent ₹65k, two cooks ₹50k, Swiggy/Zomato base fees ₹25k, electricity ₹15k, packaging ₹25k). Each biryani sells at ₹350, with ingredients + delivery commission costing ₹220 — contribution margin ₹130. Break-even = 1,80,000 ÷ 130 ≈ 1,385 biryanis per month, or ~46/day. Hitting 2,000/month gives ₹80,000 profit; falling to 1,000/month means a ₹50k loss.

When to use this

Pricing a new D2C product before listing on Amazon/Flipkart
Deciding whether to take a higher-rent retail spot in a Tier-1 mall
Building a CA-style projection for an MSME loan application

For GST impact on selling price, use our GST calculator; for cash-flow planning, see loan eligibility.

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.