Break-Even Calculator
Break-even analysis tells you exactly how many units you need to sell before you start making a profit. Enter your fixed costs (rent, salaries, equipment), variable cost per unit, and selling price to instantly find your break-even point and contribution margin.
Frequently Asked Questions
What is break-even analysis?+
Break-even analysis determines the point at which total revenue equals total costs — you're neither making a profit nor a loss. Beyond the break-even point, every unit sold generates pure profit equal to the contribution margin.
What is contribution margin?+
Contribution Margin = Selling Price − Variable Cost per Unit. It tells you how much each unit sold "contributes" toward covering fixed costs. Once fixed costs are fully covered, every rupee of contribution margin becomes profit.
How can I lower my break-even point?+
Three levers: (1) Reduce fixed costs — renegotiate rent, reduce headcount, cut subscriptions; (2) Reduce variable cost — source cheaper materials, improve process efficiency; (3) Increase selling price — improve perceived value, move upmarket.
Does break-even account for taxes?+
No — break-even analysis is a pre-tax concept. It tells you when you cover all economic costs. For post-tax profitability targets, set a "target profit" and add it to fixed costs: Break-even (with target) = (Fixed Costs + Target Profit) ÷ Contribution Margin.