Break-even Calculator
Break-even is the sales volume at which contribution from each unit finally covers your fixed costs for the period. Below it you are funding the business from capital; above it every additional unit contributes profit. Enter fixed costs, price and variable cost per unit to get the exact number of units and the revenue that matches it.
Upgrade to Pro to use Break-even Calculator
This tool is included on the Pro plan. You can preview the interface below and explore the free tools directory in the meantime.
Who should use Break-even Calculator
- Founders deciding whether a new product line can carry its own overheads
- Sellers planning a monthly target before a festive or Q4 push
- Anyone weighing a price cut against the extra volume needed to stay whole
How to use it, step by step
- Total your fixed costs for one month: rent, salaries, software, minimum ad retainer, storage.
- Enter the average selling price per unit for the period.
- Enter variable cost per unit: product cost, packaging, commission, shipping, per-order ads.
- Read break-even units and break-even revenue.
- Re-run with a lower price to see how much extra volume a discount demands.
Contribution margin drives break-even
Contribution margin is what one unit leaves behind after its own variable costs. Fixed costs divided by contribution margin gives the number of units needed before profit begins.
Contribution per unit = Price - Variable cost per unit Break-even units = Fixed costs / Contribution per unit Break-even revenue = Break-even units x Price
Worked example: Rs 1,20,000 monthly fixed costs
- Price: Rs 1,200; variable cost: Rs 780
- Contribution per unit: Rs 420
- Break-even units = 1,20,000 / 420 = 286 units
- Break-even revenue = 286 x 1,200 = Rs 3,43,200
- At a 10% discount, price falls to Rs 1,080 and contribution to Rs 300
- New break-even = 1,20,000 / 300 = 400 units
A 10% price cut required 40% more volume just to stand still. Discounts are almost never volume-neutral.
Common mistakes to avoid
- Putting advertising in fixed costs when it actually scales with orders — split it into a retainer portion and a per-order portion.
- Using list price rather than realised price after discounts and coupons.
- Ignoring returns, which remove revenue but not the variable cost already spent.
- Calculating annually when your costs and prices change quarterly.
How to read the result
Compare break-even units against your realistic monthly order volume. If break-even sits above your best month, the problem is structural: cut fixed costs, raise contribution, or do not launch.
Frequently asked questions
Should salaries be fixed or variable?
Salaried staff are fixed. Per-order packing or freelance support that scales with volume belongs in variable cost.
How often should I recalculate?
Monthly, and immediately after any marketplace fee revision, courier rate change or price change.
What it does
Compute break-even units and revenue from fixed cost, unit price and unit variable cost.
Who it's for
- • Amazon, Flipkart, Meesho, Myntra and Nykaa sellers
- • D2C brands running Shopify or WooCommerce
- • Indian small business owners who want practical, no-fluff tools
Frequently asked
Who is Break-even Calculator for?
Break-even Calculator is built for Indian ecommerce sellers and small business owners who want units needed to cover fixed costs.
Do I need to connect an API?
No. It runs locally in your browser.
Which plan includes this tool?
Break-even Calculator is included on the Pro plan and above.
Is my data safe?
Yes. Calculators and generators run in your browser. Nothing is uploaded unless you sign in and connect a data source.
Related tools
Automate Break-even Calculator on the Pro or Business plan
AIFlowBiz turns one-off tool runs into scheduled workflows — daily reports, restock alerts, review replies, price watches and full team approvals. Pro gets limited automation; Business unlocks bulk runs and marketplace, shipping and WhatsApp API connections.