Break-even Analysis Calculator
Find the exact number of units and revenue needed to cover all costs — and see how profit grows beyond that point.
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How this calculator works
Break-even analysis tells you the minimum sales volume needed to cover all your fixed and variable costs. Below the break-even point you're losing money; above it, every additional unit sold generates pure profit equal to its contribution margin. This is the most fundamental tool in business finance.
Break-even units = Fixed costs ÷ (Selling price − Variable cost per unit) | Break-even revenue = Break-even units × Selling price
Last updated: March 2026 · Rates and slabs updated for FY 2025-26
Reduce fixed costs first
Cutting fixed costs (rent, subscriptions, headcount) directly lowers your break-even — a much faster lever than increasing sales.
Contribution margin is key
CM = Price − Variable cost. Higher CM means fewer units needed to break even. Optimise this before scaling.
Use it for new products
Run break-even analysis before launching any new product or pricing tier — it tells you if the market size makes it viable.
Frequently Asked Questions
Break-even units = Fixed costs ÷ Contribution margin per unit. Contribution margin = Selling price − Variable cost per unit. Break-even revenue = Break-even units × Selling price.
Most Indian startups aim to break even within 12–18 months of launch. For product businesses, 6–12 months is ideal. Service businesses can often break even faster. The lower your fixed costs, the faster you break even.
Break-even is the point where total revenue equals total costs — zero profit, zero loss. Profitability begins after break-even. A business can reach break-even and still have poor cash flow due to timing of payments.
Three ways: (1) Increase selling price to raise contribution margin, (2) Reduce variable costs (negotiate better supplier rates), (3) Cut fixed costs (smaller office, fewer subscriptions). Even a 10% reduction in break-even units significantly helps.