🌏 Units & Revenue Modes📈 Break-Even Chart💰 Margin of Safety
Break-Even Calculator
Find the exact number of units to sell or revenue to earn to cover all costs. Includes contribution margin, margin of safety, and target profit analysis.
Fixed Costs (per period)
₹
Per Unit Economics
₹
₹
Current / Target Sales
units
Revenue & Variable Cost Ratio
%
₹
Target Profit (Optional)
₹
Break-Even Units
0
units to cover all fixed and variable costs
Break-Even Revenue
₹0
Contribution Margin
₹0
CM Ratio
0%
Margin of Safety
0%
Units for Target Profit
0
Profit at Target Sales
₹0
📝 Formula
BE Units = Fixed Costs / (Selling Price − Variable Cost)
Contribution Margin = SP − VC | CM Ratio = CM / SP BE Revenue = Fixed Costs / CM Ratio | Target Units = (FC + Target Profit) / CM Margin of Safety = (Actual Sales − BE Sales) / Actual Sales × 100
Contribution Margin per Unit
₹0
Each unit sold contributes this to cover fixed costs
CM Ratio
0%
% of each revenue rupee that covers fixed costs
Break-Even Revenue
₹0
Revenue needed to break even
Margin of Safety
0%
How much sales can fall before losses
🎯 Target Profit Analysis
Units for target profit:0 units
Revenue for target profit:₹0
Profit at planned sales:₹0
Units above break-even:0 units
Break-Even Chart — Revenue vs Total Cost
ⓘ Break-even analysis assumes all units produced are sold, variable costs are constant per unit, and fixed costs do not change within the relevant range. In practice, costs may have step-fixed components. Update inputs for each planning period.
Frequently Asked Questions
What is break-even point? +
Break-even is where revenue = total costs. No profit, no loss. Formula: BE Units = Fixed Costs / Contribution Margin. Contribution Margin = Selling Price − Variable Cost. Below break-even = loss zone. Above break-even = profit zone. Every unit sold above break-even generates pure contribution margin profit.
What is contribution margin? +
Contribution Margin = Selling Price − Variable Cost per unit. It's how much each sale contributes to covering fixed costs and then profit. CM Ratio = CM / SP. Example: ₹1000 price, ₹600 variable cost → CM = ₹400, CM Ratio = 40%. Higher CM = fewer units needed to break even.
What is margin of safety? +
Margin of Safety = (Actual Sales − Break-Even Sales) / Actual Sales × 100. Shows how far sales can drop before losses begin. 30% MOS = sales can fall 30% before you hit losses. Healthy businesses target 25-40% MOS. Low MOS = highly vulnerable to revenue dips.
What are fixed vs variable costs? +
Fixed: rent, salaries, loan EMIs, insurance, subscriptions — don't change with volume. Variable: raw materials, packaging, direct labor, commissions, shipping — change proportionally with output. For break-even analysis, classify every cost into one of these two categories.
How to calculate break-even revenue? +
BE Revenue = Fixed Costs / CM Ratio. Example: Fixed costs = ₹5L/month, variable costs = 60% of revenue → CM Ratio = 40%. BE Revenue = 5,00,000 / 0.40 = ₹12.5L/month. This is the minimum monthly revenue needed to avoid losses.
What is target profit analysis? +
Target Units = (Fixed Costs + Target Profit) / Contribution Margin. To earn ₹2L profit with ₹5L fixed costs and ₹400 CM: (5,00,000 + 2,00,000) / 400 = 1,750 units. This extends break-even to plan for a specific profit goal, not just zero profit.