Break-even Calculator

Starting a cloud kitchen, a home bakery or an online store? Before anything else, know your break-even point — how much you must sell each month just to cover rent, salaries and other fixed costs. This calculator works it out in units and in rupees, shows how much each sale contributes, and how much profit (or loss) you'd make at the sales level you expect.

How to use it

Add up your monthly fixed costs.
Enter your selling price and the variable cost of each unit (material, packaging, delivery, fees).
Enter the sales you expect to see profit and your margin of safety.

Formula

Break-even units = Fixed costs ÷ (Price − Variable cost)

Example

A home bakery pays ₹60,000 a month in rent, salary and utilities. Each cake sells for₹250 and costs ₹150 to make and deliver, so each contributes ₹100. Break-even = 60,000 ÷ 100 =600 cakes (₹1.5 lakh of sales) a month. Selling 800 earns a ₹20,000 profit with a 25% margin of safety. Raising the price to ₹275 lowers break-even to 480 cakes. Check pricing with theprofit margin calculator.

Disclaimer: Results are estimates for educational purposes only and are not financial, investment or tax advice. Please verify with your bank, broker or a SEBI-registered adviser before acting. Read the full disclaimer.

Frequently asked questions

What is the break-even point?

The number of units (or the sales revenue) at which total revenue exactly covers total costs, so you make neither profit nor loss. Every sale beyond it adds profit.

How is it calculated?

Break-even units = Fixed costs ÷ (Selling price − Variable cost per unit). The amount in brackets is the contribution margin — what each sale contributes towards fixed costs.

What are fixed and variable costs?

Fixed costs stay the same whatever you sell — rent, salaries, loan EMIs, software. Variable costs rise with each unit — raw material, packaging, delivery, payment gateway fees and marketplace commission.

How can I reach break-even faster?

Raise prices, cut variable costs (better supplier rates, cheaper packaging) or reduce fixed costs. Small changes to the contribution per unit often move the break-even point a lot.