Break-even Calculator: Units and Sales Needed to Cover Costs

What is it?

The Break-even Calculator shows how many units, and how much in sales, you need before your business starts making a profit.

Who is it for?

People starting a shop, café or small business, and owners checking how much they must sell each month.

How to use it

Enter Fixed costs (rent, salaries…) for a period (for example a month), the Price per unit and the Variable cost per unit. Read Break-even units, Break-even sales, Profit per unit and the Contribution margin. The answer appears as you type; there is no Calculate button. Tap Copy result to copy it, or Share on WhatsApp to send it.

Fixed or variable?

  • Fixed: costs that stay the same whatever you sell: rent, salaries, loan EMIs, software, electricity base charges.
  • Variable: costs per unit sold: raw material, packaging, delivery, payment fees, commission.

Contribution margin

Price minus variable cost: what each sale contributes towards fixed costs. Break-even units = fixed costs ÷ contribution per unit. A café with ₹1.5 lakh monthly fixed costs and ₹60 contribution per coffee needs 2,500 coffees a month (about 85 a day).

Using it

  • If break-even is unrealistic, raise prices, cut variable costs, or lower fixed costs.
  • Plan for some months below break-even when you start.

Errors and how to fix them

  • “The price must be more than the cost per unit”: you lose money on each sale, so break-even is impossible; raise the price or cut costs.

Open the tool: Break-even Calculator

Still stuck?

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Questions, or an error not listed here?

Tell us in the comments: what you were doing, the exact message you saw, and your device and browser. We read every comment and add new fixes to this article.