Billing Bazaar Break-even calculator
Find out how many units you need to sell each month to cover your fixed costs – and how many more for the profit you want.
| Break-even sales value | |
| Contribution per unit | |
| Contribution margin | |
| Units per day (26 working days) | |
| Units needed for target profit | |
| Sales needed for target profit | |
| Profit at expected sales | |
| Margin of safety |
Below this many units you make a loss for the month; every unit above it adds its contribution to profit.
Runs in your browser. Nothing you enter is sent to us or stored on our server.
How to use the Break-even calculator
- Enter your fixed costs for a month: rent, salaries, electricity, loan EMI and so on.
- Enter the selling price of one unit.
- Enter the variable cost of one unit: purchase or making cost, packing, delivery, commission.
- Optionally add the sales you expect or a target profit.
- Read the break-even units, sales value and units needed per day.
The break-even formula
Break-even units = fixed costs ÷ (selling price − variable cost per unit). The amount left from each sale after its variable cost is the contribution. With ₹50,000 fixed costs and ₹100 contribution per unit, you need to sell 500 units to break even.
Using it for decisions
Try changing the price, a supplier rate or the rent to see how your break-even moves. A small price increase or a lower variable cost often cuts the break-even point more than you would expect. If you sell many items, use your average price and average variable cost.
Questions people ask
What counts as a fixed cost?
Costs that stay the same whatever you sell in the month: shop rent, staff salaries, electricity basic charges, internet, software subscriptions, loan EMIs and your own drawings if you want them covered.
What is a variable cost?
A cost that goes up with each unit sold: the purchase or raw material cost, packing, delivery, payment gateway or marketplace commission.
What is margin of safety?
It is how far your expected sales are above break-even, as a % of expected sales. A 30% margin of safety means sales can fall 30% before you start making a loss.
Should I use prices with or without GST?
Use prices without GST if you are a regular GST-registered business, since the GST you collect is not your income.