Determine the minimum units and revenue required to cover all fixed and variable business costs.
Calculate your business break-even point in units and revenue with this free online break-even calculator.
A break-even calculator finds the minimum sales needed to cover all your costs without making a profit or a loss. The break-even point is where total revenue equals total costs. Any sales above this point generate profit.
This is one of the most important financial tools for any new or growing business.
Break-even point in units equals fixed costs divided by (selling price minus variable cost per unit). The denominator is called the contribution margin per unit.
For example, if fixed costs are 100,000 rupees, selling price is 500 per unit, and variable cost is 300 per unit, the break-even point is 100,000 divided by 200, which is 500 units.
Fixed costs stay the same regardless of how much you produce or sell: rent, salaries, insurance, and loan payments are fixed costs. Variable costs change with production: raw materials, packaging, and shipping are variable costs.
Knowing both helps you calculate the contribution margin (selling price minus variable cost) which is the building block for break-even analysis.
Break-even analysis tells you how much you need to sell just to survive. It helps you evaluate new product ideas, set sales targets for your team, understand the impact of price changes, and decide whether a business idea is viable.
Before launching a product or service, always run a break-even calculation to make sure the numbers make sense.
If your break-even point seems too high (you need to sell too many units to cover costs), you have three options: reduce fixed costs, reduce variable costs, or increase the selling price.
Even a small price increase can dramatically lower your break-even point. This calculator lets you experiment with different price and cost scenarios instantly.
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Common questions about Break-Even Calculator: Find How Many Units You Need to Sell to Break Even on Tez Invoice.
It finds the number of units (or the revenue) needed to cover all fixed and variable costs, reaching a point of no profit and no loss.
Break-even units equals fixed costs divided by (selling price minus variable cost per unit).
Fixed costs do not change with output (rent, salaries). Variable costs change with each unit produced (materials, shipping).
Yes. Free with no sign up.
It shows the minimum sales needed to survive. Any sales above break-even generate profit.
Lower fixed costs, reduce variable costs, or increase the selling price.
Yes. Fully responsive.
No. In-browser only.
Contribution margin is the selling price minus variable cost per unit. It is the portion of each sale that goes toward covering fixed costs.
Use the free Invoice Generator on Tez Invoice.