Break-Even Analysis Calculator
Calculate your business's break-even point and determine when you'll start making a profit. Analyze fixed costs, variable costs, and selling price to make informed business decisions.
About Break-Even Analysis
Break-even analysis is a crucial financial tool that helps businesses determine when they will start making a profit. By analyzing fixed costs, variable costs, and selling price, you can calculate the exact point where your total revenue equals your total costs.
Fixed Costs
Costs that remain constant regardless of production volume
Variable Costs
Costs that vary with production volume
Selling Price
Price at which you sell each unit
Break-Even Point
Point where revenue equals total costs
How to Use the Calculator
Step 1: Enter Fixed Costs
Input your business's fixed costs like rent, salaries, and utilities
Step 2: Add Variable Costs
Enter variable costs per unit like materials and labor
Step 3: Set Selling Price
Input your selling price per unit
Step 4: Calculate
Get your break-even point and analysis
Benefits
Profit Planning
Plan your path to profitability
Risk Assessment
Evaluate business risks effectively
Smart Decisions
Make informed pricing decisions
Goal Setting
Set realistic sales targets
Key Features
Accurate Calculation
Precise break-even point calculation
Visual Analysis
Interactive charts and graphs
Margin of Safety
Calculate your safety buffer
Export Reports
Share your analysis easily
Break-Even Analysis for Indian Small Businesses
Break-even tells you how many units (or how much revenue) you must sell to cover fixed costs — rent, salaries, EMI — plus variable cost per unit (raw material, packaging, delivery commission). Essential before opening a cloud kitchen, boutique, or D2C brand on Amazon/Flipkart.
Formula: Break-even units = Fixed costs ÷ (Selling price − Variable cost per unit). Margin of safety = (Actual sales − Break-even sales) ÷ Actual sales.
Worked example — tiffin service, Pune: Fixed costs ₹45,000/month (cook salary, kitchen rent, gas, delivery app subscription). Each tiffin sells at ₹120; variable cost (groceries + packaging + delivery cut) ₹75. Contribution margin = ₹45. Break-even = 45,000 ÷ 45 = 1,000 tiffins/month (~33/day). At 1,400 tiffins/month, margin of safety ≈ 29% — a reasonable buffer before festival-season slumps.
GST note: If you are GST registered, use prices and costs excluding GST for margin maths unless you pass through GST without mark-up. Include payment gateway fees (Razorpay ~2%) in variable cost for online sales.
Guide by our Tools Editor. Track ongoing spends in Business Expense Tracker and model loans in Loan Calculator.
Frequently Asked Questions
What is a break-even analysis?
Break-even analysis is a financial calculation that determines the point at which your business's total revenue equals its total costs. At this point, your business is neither making a profit nor a loss. It helps you understand how many units you need to sell to cover your costs.
How do I calculate the break-even point?
The break-even point is calculated by dividing your fixed costs by the difference between the selling price per unit and variable cost per unit. The formula is: Break-Even Point (units) = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit).
What is the margin of safety?
The margin of safety is the difference between your actual or expected sales and the break-even point. It shows how much sales can drop before you reach the break-even point. A higher margin of safety indicates lower business risk.