Break-Even Calculator
NewCalculate the break-even point for your business or product.
Rent, salaries, insurance
Price you charge per unit
Materials, packaging, commission
Expected or target units sold
What is Break-Even Calculator?
A Break-Even Calculator finds the exact point at which your total revenue equals your total costs - where you make neither a profit nor a loss. It tells you how many units you need to sell (or how much revenue you need to generate) to cover all your fixed and variable costs. Understanding your break-even point is fundamental to business planning, pricing decisions, and financial viability assessment.
Why use Nuo Tools's Break-Even Calculator?
How to use Break-Even Calculator
Enter your fixed costs - rent, salaries, insurance, and other costs that don't change with sales.
Enter the selling price per unit.
Enter the variable cost per unit - materials, packaging, commission per unit sold.
Your break-even point in units and revenue is calculated instantly.
Enter a target sales volume to see the profit or loss at that level.
Frequently asked questions
What is the break-even formula?+
Break-even units = Fixed Costs / (Selling Price - Variable Cost per Unit). The denominator (Selling Price - Variable Cost) is called the Contribution Margin per unit. For example, if fixed costs are ₹50,000, selling price is ₹500, and variable cost is ₹200: Break-even = 50,000 / (500 - 200) = 50,000 / 300 = 167 units.
What are fixed costs?+
Fixed costs are expenses that remain constant regardless of how many units you sell - rent, salaries, insurance, software subscriptions, loan repayments, and depreciation. They must be paid whether you sell 0 units or 10,000 units.
What are variable costs?+
Variable costs change directly with the number of units produced or sold - raw materials, packaging, transaction fees, shipping per unit, and sales commissions. If you sell zero units, variable costs are zero.
What is contribution margin?+
Contribution margin = Selling Price - Variable Cost per Unit. It represents how much each unit sale contributes toward covering fixed costs and generating profit. A higher contribution margin means you reach break-even with fewer unit sales.
When to use this tool
- →Validating a new business idea by understanding minimum sales requirements
- →Setting sales targets that ensure profitability
- →Evaluating the impact of a price change on break-even units
- →Deciding whether to launch a new product by comparing break-even to realistic sales
- →Presenting financial viability to investors or lenders