Break-even Calculator: the sales you need to cover your costs
Break-even units and sales from your monthly costs, with target profit, a chart and what-if scenarios.
- Free to use
- Runs in your browser
- No sign-up
To set the price itself, the Profit Margin and Markup Calculator works from your cost and the margin you want. Planning an offer? The Discount and Offer Profit Calculator shows how many more sales it needs. Selling online, the Marketplace Fee Calculator gives the break-even price for one product after fees.
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About the Break-even Calculator
Find out how much you need to sell each month before your business stops losing money. List your fixed costs a month, such as rent, salaries, software and loan EMIs, then your price per unit or average order and what each sale costs you, in rupees or as a share of the price. You get the break-even units and sales, the units for a profit you choose, your margin of safety from current sales, a chart of sales against costs, and scenarios side by side, with every formula shown. It runs in your browser.
How it works
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Step 1
List your fixed costs a month, one per row, and add any others your business has.
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Step 2
Enter what you count (members, orders, plates), the price per unit or your average order before GST, and the variable cost per unit in rupees or as a percentage of the price.
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Step 3
Add a target profit and your current monthly sales if you like, then read the break-even point, the chart and the scenarios, and copy the summary.
How break-even is worked out
Each sale first pays for itself: the price minus the variable cost is its contribution. What is left goes towards the fixed costs. Break-even units are the fixed costs divided by the contribution per unit, and break-even sales are the fixed costs divided by the contribution as a share of the price. A gym with ₹4,29,500 of fixed costs a month and ₹2,150 of contribution per member breaks even at 199.8, so 200 members. This is standard maths, shown with your numbers under the result.
Margin of safety and scenarios
The margin of safety is how far your sales can fall before you make a loss: current sales minus break-even sales, as a share of current sales. The scenarios change one thing at a time, a 10% higher price, 10% lower variable costs or 10% lower fixed costs, plus a mix of your own, and keep how many you sell the same. They show which lever moves your break-even most, not what customers will do.
What this tool cannot do
It treats every sale as the same average sale and every month as the same, so seasons, a changing product mix and costs that rise in steps (a second trainer, a bigger shop) are not modelled. It counts profit before income tax and does not look at cash in the bank. It is not tax or accounting advice: ask your accountant how to treat loan repayments and GST in your own books.
Frequently asked questions
How do I calculate my break-even point?
Add up your fixed costs for a month. Take your variable cost per unit away from your price to get the contribution per unit. Divide the fixed costs by the contribution. With ₹1,00,000 of fixed costs, a ₹500 price and a ₹300 variable cost, each sale contributes ₹200, so you break even at 1,00,000 ÷ 200 = 500 units a month.
What is the difference between fixed and variable costs?
Fixed costs stay the same whether you sell a lot or nothing in a month: rent, salaries, software subscriptions, loan EMIs. Variable costs rise with each sale: stock, packing, delivery, card or UPI payment fees, commission. If a cost rises only when you grow, such as a new staff member, treat it as fixed and try it as a scenario.
Should I include GST in the price?
No. Use your price before GST, because the GST you collect is passed on to the government and is not your income. If you claim input tax credit on what you buy, use your costs before GST as well; if you cannot claim it, include the GST you pay in the costs.
Should a loan EMI count as a fixed cost?
For a monthly break-even, yes: the EMI is cash that has to go out every month. In your accounts, only the interest part of an EMI is an expense; the rest repays the loan. If you want a break-even that matches your profit and loss statement, enter only the interest, and ask your accountant if you are unsure.
What if I sell many products at different prices?
Count orders instead of products. Enter your average order value before GST as the price, and your variable cost as a percentage of the price, for example the share of each order that goes on stock, packing and payment fees. The result is the number of average orders a month you need to break even.
Related reading
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