Break-even Point Calculator

• Contribution per unit = Price − Variable cost
• Contribution margin = Contribution / Price × 100
• Break-even units = Fixed costs / Contribution per unit
• Break-even revenue = Break-even units × Price
• Units for target profit = (Fixed costs + Target profit) / Contribution per unit
• Margin of safety = (Expected − Break-even) / Expected × 100

Every unit sold contributes its price minus its variable cost towards fixed costs. Once accumulated contribution equals fixed costs the business breaks even; beyond that, each additional unit's contribution drops straight to operating profit. A low contribution margin means the break-even volume is highly sensitive to price cuts — a 10% discount on a 40% margin business requires a 33% volume increase just to stand still.

1. 1.Contribution per unit1,200.00 − 700.00₹500.00
2. 2.Contribution margin500.00 / 1,200.00 × 10041.7%
3. 3.Break-even units500,000 / 500.001,000.0
4. 4.Break-even revenueunits × 1,200.00₹1,200,000
5. 5.Target-profit units(500,000 + 200,000) / 500.001,400.0

• • Selling price and variable cost per unit stay constant across the volume range.
• • Fixed costs are genuinely fixed within the relevant range.
• • Single product or a stable sales mix.
• • Production equals sales; no inventory build-up.

Results are planning estimates generated in your browser. Nothing you enter is uploaded or stored. Verify material decisions with your lender, adviser or chartered accountant.