Break-even calculator

Work out how many units you need to sell to cover your fixed costs.

ReviewedAny currency
₹
Costs that do not change with sales, such as rent, for the period.
₹
What you charge for one unit.
₹
Costs for each unit, such as materials.
Break-even units
500 units

Each unit contributes ₹200.00 towards fixed costs of ₹1,00,000.00, so you need to sell 500 units (₹2,50,000.00 in sales) to break even.

At the break-even point
Contribution per unit₹200.00
Exact break-even500 units
Fixed costs covered₹1,00,000.00
Break-even sales₹2,50,000.00
Assumes one price and one variable cost per unit, and fixed costs that do not change with volume. Units are rounded up to whole units.

How it's calculated

Break-even units = Fixed costs ÷ (Price − Variable cost)

Price minus variable cost is the contribution each unit makes towards fixed costs. The result is rounded up to whole units.

Assumptions

  • One price and one variable cost per unit.
  • Fixed costs do not change with the number of units sold.

Worked example

With fixed costs of 10,000, a price of 50 and a variable cost of 30, each unit contributes 20, so 500 units (25,000 in sales) break even.

Questions

What if the price is below the variable cost?

Then each sale loses money and there is no break-even point. Raise the price or lower the variable cost.

Why round up?

You cannot sell part of a unit, and selling one fewer would leave some fixed costs uncovered.

What counts as a fixed cost?

Costs you pay regardless of sales in the period, such as rent, salaries and insurance.

Sources

Last reviewed 1 October 2026 by Sachin. How we check calculators.