Free tool
Break-even and margin calculator
How many units you have to sell each month before the business stops losing money, and how much room you have above that line.
What one more unit costs you: materials, packaging, commission, delivery.
Costs that do not move with volume: rent, salaries, loan interest, utilities.
How this is worked out
Contribution is what each sale leaves after its own variable cost. Fixed costs are covered only by contribution, so break-even volume is fixed costs divided by contribution per unit. The example figures are an illustrative bakery line and can be replaced with yours.
Real businesses sell more than one product at different margins, and some costs are semi-variable. For a product-level view, costing has to be built from the ledger rather than estimated.
Break-even volume a month
3,422 units
- Contribution per unit
- Rs. 190
- Contribution margin
- 42.2%
- Break-even sales a month
- Rs. 15,39,474
- Operating profit at your volume
- Rs. 2,05,000
- Margin of safety
- 24.0%
Sales can fall 24% before the month makes a loss.
Break-even is only as good as the cost per unit behind it. Most businesses have never measured theirs.
Book a free callFigures exclude VAT and are illustrative. This is a general guide, not advice on your circumstances.