What is the Break-Even Point Calculator?
The break-even point is where total revenue equals total costs — beyond it, every additional unit sold adds to profit. It depends on three numbers: your fixed costs (rent, salaries, software subscriptions that don't change with sales volume), the price you charge per unit, and the variable cost to produce or deliver each unit.
This calculator computes the break-even point in units and in revenue, plus your contribution margin — the amount each sale contributes toward covering fixed costs after variable costs.
Break-Even Point Calculator Formula & How It Works
- Fixed Costs = total costs that don't change with output (rent, salaries, etc.)
- Price per Unit = selling price of one unit
- Variable Cost per Unit = direct cost to produce/deliver one unit
- Contribution Margin = Price per Unit − Variable Cost per Unit
Each unit sold contributes its 'contribution margin' (price minus variable cost) toward fixed costs. Once enough units are sold for those contributions to add up to the fixed costs, the business breaks even — every unit after that is profit.
Worked Examples
Fixed costs ₹50,000, Price ₹500, Variable cost ₹300
Contribution margin = ₹200. Break-even units = 50,000 / 200 = 250 units. Break-even revenue = 250 × ₹500 = ₹1,25,000.
SaaS example: Fixed costs ₹2,00,000/month, Price ₹999/user, Variable cost ₹99/user
Contribution margin = ₹900. Break-even = 2,00,000 / 900 ≈ 223 users.