Free Break-Even Calculator
Find how many units, students or orders you need each month to cover your costs, and how many more it takes to reach a profit goal. Works for shops, institutes, services and online businesses.
How to use the break-even calculator
- Add up your fixed costs for a month: rent, salaries, software, loan EMIs and other costs that stay the same whatever you sell.
- Enter your price per unit before GST.
- Enter the variable cost per unit, the cost that comes with each sale, such as materials, delivery, payment fees or commissions.
- Add a profit goal to see what it takes to earn it.
The break-even formula
| Step | Formula | Example |
|---|---|---|
| Contribution per unit | Price - variable cost | ₹20,000 - ₹3,000 = ₹17,000 |
| Break-even units | Fixed costs / contribution | ₹1,50,000 / ₹17,000 = 8.8, so 9 units |
| Units for a profit goal | (Fixed costs + goal) / contribution | ₹2,50,000 / ₹17,000 = 15 units |
In the example, an institute with ₹1.5 lakh of monthly fixed costs and a ₹20,000 course needs 9 admissions a month to cover costs and 15 to make ₹1 lakh profit. The numbers are illustrative, so use your own.
How to lower your break-even point
- Raise the price or add a premium option, if customers see the value.
- Cut variable costs per unit, such as delivery or payment fees.
- Reduce fixed costs you do not need.
- Sell more to existing customers, which costs less than finding new ones.
To see how marketing affects these numbers, check your cost per customer with the cost per lead calculator and campaign returns with the ROI calculator.
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Frequently Asked Questions
Is this break-even calculator free?
Yes. It is free with no sign-up, and the numbers stay in your browser.
What is a break-even point?
It is the number of units or the amount of sales at which your revenue exactly covers your costs, so you make neither a profit nor a loss.
What counts as a fixed cost?
Costs that stay the same whatever you sell, such as rent, salaries, software subscriptions and loan EMIs.
What counts as a variable cost?
Costs that rise with each sale, such as materials, packaging, delivery, payment gateway fees and sales commissions.
Should I include marketing in fixed costs?
If you spend a set amount each month on marketing, include it in fixed costs. If you pay per sale, such as commissions, include it in variable cost.