Break-even Calculator

Break-even Revenue = BEP Units × Selling Price

The break-even point is the level of sales at which your total revenue equals total costs — the point where you are neither making a profit nor a loss. Our break-even calculator computes the exact number of units you need to sell (or revenue you need to generate) to cover all your fixed and variable costs. This is essential for any business plan, product pricing decision, or investment appraisal.

Break-Even Units = Fixed Costs ÷ (Selling Price per Unit − Variable Cost per Unit). The denominator (SP − VC) is called the Contribution Margin — the amount each unit sale contributes toward covering fixed costs. Example: A cloud kitchen has monthly fixed costs of ₹1.5 lakh (rent, salaries, licenses), sells meals at ₹200 (average order value), and variable cost per meal is ₹80 (ingredients, packaging, delivery). Contribution Margin = ₹120. Break-even = 1,50,000 ÷ 120 = 1,250 meals/month.

Beyond the break-even point, every additional unit sold generates pure profit equal to the contribution margin. This is why scaling matters so much in business — once fixed costs are covered, incremental revenue is highly profitable. Use our break-even point calculator for startup planning, new product launches, pricing strategy, or evaluating whether to continue or shut down an underperforming product line.