Break-Even Point Calculator

Break-even units = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit). Break-even revenue = Fixed Costs / Contribution Margin Ratio where contribution margin ratio = (Selling Price - Variable Cost) / Selling Price × 100. Calculator applies both methods.

No — break-even can be in units (for a single product), revenue (for mixed baskets), or hours of utilisation (for service businesses). The calculator surfaces all three using the contribution-margin ratio from your inputs.

Margin of safety = Actual / Projected Sales - Break-even Sales. It measures the buffer above break-even. A 25% margin of safety means sales can fall 25% before losses begin. Banks typically expect at least 15-20% margin of safety for working-capital limits.

No — EMIs are a cash flow item, not a cost-of-goods item. Break-even uses accounting costs: fixed costs include depreciation (not the EMI principal) and interest on term debt (not the EMI). For a builder/contractor, include depreciation on equipment and notional site rent, not the construction loan EMI.

Contribution Margin Ratio = (Selling Price - Variable Cost) / Selling Price × 100. A 60% ratio means 60 paise of every rupee of revenue covers fixed costs and profit after the variable cost is recovered. Industries with high CM ratios (SaaS, consulting) scale faster because each new sale is almost pure profit after variable cost.

The calculator uses a weighted-average selling price and variable cost across a product mix. Enter the blended (average) selling price per unit and blended variable cost per unit for the mix to get an approximate mix-level break-even. For precise multi-product analysis, use the revenue-based formula (Fixed Costs / CM Ratio) rather than the per-unit formula.