Break-Even Calculator Online Free — Break-Even Point Analysis
Find out how many units you need to sell to cover your costs. Break-even analysis helps you set prices, plan production, and make smarter business decisions.
Rent, salaries, insurance, etc.
Materials, packaging, commission
Price you charge the customer
Break-Even Units
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Break-Even Revenue—
Contribution Margin per Unit—
Contribution Margin Ratio—
Fixed Costs—
Profit / Loss Zone
Units sold vs. profitability (based on your inputs)
Loss ZoneBreak-EvenProfit Zone
Warning: Selling price must be greater than variable cost per unit to reach break-even.
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How to Use the Break-Even Calculator
Enter your total fixed costs — expenses that don't change with production (rent, salaries, insurance).
Enter the variable cost per unit — direct costs per item made/sold (materials, packaging).
Enter the selling price per unit — what you charge your customer.
Get break-even units, break-even revenue, contribution margin, and profit/loss zones.
Frequently Asked Questions
Break-even analysis determines the point at which total revenue equals total costs — meaning the business makes neither profit nor loss. Formula: Break-Even Units = Fixed Costs ÷ (Selling Price − Variable Cost per Unit). Any sales above this point generate profit; below it, the business operates at a loss.
Contribution Margin per Unit = Selling Price − Variable Cost per Unit. It's the amount each unit "contributes" to covering fixed costs and then to profit. Contribution Margin Ratio = Contribution Margin ÷ Selling Price × 100. A higher ratio means each rupee of revenue contributes more to covering fixed costs.
Break-even analysis helps you: (1) Set minimum pricing — ensure your price covers costs. (2) Evaluate new products — is the market large enough to exceed break-even? (3) Plan production targets — set sales goals above break-even for desired profit. (4) Assess cost changes — if rent rises, recalculate how many extra units you need to sell.
Fixed Costs remain constant regardless of production volume: rent, salaries, loan EMIs, insurance, software subscriptions. Variable Costs change in direct proportion to output: raw materials, packaging, delivery charges, sales commissions, power per unit. Some costs (semi-variable) have both components — e.g., a base electricity bill plus per-unit consumption.