FINBIZTOOLS
Break-Even Calculator
Find the sales volume and revenue needed to cover entered costs.
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How it works
Enter fixed costs for one period, variable cost per unit and selling price per unit. Use consistent units and the same tax basis. The selling price must exceed variable cost.
Formula and methodology
Contribution per unit = selling price − variable cost. Break-even units = fixed costs ÷ contribution per unit. Exact break-even revenue = break-even units × selling price. The whole-unit target rounds units upward and shows its corresponding revenue.
Example
Fixed cost ₹1,00,000, variable cost ₹200 and price ₹500 give 333.333333 fractional break-even units. Selling 334 whole units produces ₹1,67,000 revenue and covers these costs.
Assumptions and limits
Assumes constant prices, unit costs and fixed costs, and a single product or constant sales mix. The scenario table illustrates revenue, cost and profit at selected sales volumes.
Frequently asked questions
Why must price exceed variable cost?
Each additional unit must contribute toward fixed costs. A zero or negative contribution cannot cover positive fixed costs.
Which unit target should I use?
For indivisible items use the rounded-up whole-unit target. Fractional break-even is useful for divisible services or theoretical analysis.
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Disclaimer
Results are informational estimates based on your inputs. Verify important pricing, tax, accounting and legal decisions with a qualified professional. FinBizTools does not guarantee document validity or financial outcomes.
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