Break-even calculator (free): units, revenue and margin of safety
The short answer
Break-even units are fixed costs divided by contribution per unit, which is the selling price minus the variable cost of one unit. Multiply by price for break-even revenue. Add a target profit to fixed costs to find the units needed for that profit; the margin of safety shows how far sales can fall before you make a loss.
| Contribution per unit | ₹350 (43.8% of price) |
|---|---|
| Break-even | 343 units = ₹2,74,400 revenue a month |
| Units for target profit | 486 |
| Profit at expected sales | ₹55,000 |
| Margin of safety | 31.4% of expected sales |
Estimates only, excluding tax. Figures stay in your browser.
The formulas
All figures are per month:
- Contribution per unit = price − variable cost per unit.
- 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 units − break-even units) ÷ expected units.
Worked example (the starting figures)
Fixed costs ₹1,20,000 a month, price ₹800, variable cost ₹450: each sale contributes ₹350, so break-even is 343 units (₹2,74,400 of sales). A ₹50,000 profit needs 486 units. Selling 500 units gives ₹55,000 profit and a margin of safety of about 31%.
Questions people ask next
What is a break-even point?
The level of sales at which total revenue equals total costs, so the business makes neither a profit nor a loss.
What is contribution margin?
Selling price minus variable cost per unit: what each sale contributes towards fixed costs and then profit.
How can I lower my break-even point?
Raise the price, cut the variable cost per unit, or reduce fixed costs. Small price rises often move break-even the most.
Does the calculator store my numbers?
No. Everything runs in your browser.