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Free Break-Even Calculator for a Small Business

Find how many units you must sell to cover your costs, and how many to reach your target profit.

Your costs and price

Rent, salaries, loan EMI and others you pay even with no sales.

Material, packing, delivery and commission on each sale.

Break-even point
0 units
Sales at break-even
Margin on each unit
Margin as a share of price
Units for your target profit
Profit at the units you expect
Cushion above break-even

The break-even formula

Break-even units = fixed costs ÷ (selling price − variable cost per unit).

Units for a target profit = (fixed costs + target profit) ÷ (selling price − variable cost per unit).

Example: fixed costs of ₹1,00,000, a price of ₹500 and a variable cost of ₹300 leave ₹200 on each unit. You break even at 500 units, or ₹2,50,000 of sales. For ₹50,000 of profit, you need 750 units.

Keep GST out of the price, because it is not your income. Real costs rarely stay neat, so run this again with a lower price and higher costs to see how much room you have. Check your margin with the margin calculator.

Questions people ask

What is the break-even point?
The sales level at which income equals total costs, so there is no profit and no loss. Below it you lose money, and above it you make a profit.
How do I calculate break-even units?
Divide your fixed costs by the amount left from each sale after its variable cost. With ₹1,00,000 of fixed costs and ₹200 left per unit, you break even at 500 units.
What counts as a fixed cost?
Costs you pay even with no sales, such as rent, salaries and loan EMI. Costs that rise with each sale, such as materials, packing and commission, are variable.

Related free tools

Free Margin and Markup Calculator with GSTWork out margin, markup, selling price and price with GST, from your cost. Free EMI Calculator: Monthly Payment and Yearly ScheduleWork out your loan EMI, total interest and a year-by-year schedule, with an optional processing fee. Free Quotation Generator with GST: Word or PDFMake a quotation with items, GST and terms, and download it as a Word file or a PDF. Nothing is uploaded.

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