Free Online Break Even Calculator for Business Profit Analysis
Break-even analysis made simple for entrepreneurs and business owners. Calculate your break-even point in units and revenue, contribution margin, margin of safety, and profit or loss — instantly and privately in your browser.
Calculate Your Break-Even Point
Detailed Breakdown
How to Use the Break Even Calculator
Enter Fixed Costs
Enter your total fixed costs such as rent, salaries, insurance, and other overhead expenses that remain constant regardless of production volume.
Enter Variable Cost Per Unit
Enter the variable cost incurred for producing or acquiring each unit, including raw materials, packaging, shipping, and direct labour costs.
Enter Selling Price Per Unit
Enter the price at which you sell each unit to your customers. This should be the final selling price before any taxes.
Enter Expected Sales (Optional)
Optionally enter your expected or actual sales quantity to calculate margin of safety and profit or loss at that volume.
Click Calculate
Press the Calculate button or hit Enter to instantly see your break-even point in units, break-even revenue, contribution margin, and detailed analysis.
Copy or Reset Results
Use the Copy Result button to save your analysis or click Reset to clear all fields and start a new calculation.
Key Features of Our Break Even Calculator
100% Free Forever
Perform unlimited break-even calculations without any cost, subscription, or hidden charges. Every feature is free for all users.
Highly Accurate Results
Uses the standard break-even formula trusted by accountants and MBA programs for precise, reliable business calculations.
Instant Calculation
Get your break-even point, contribution margin, and profit analysis in under 100 milliseconds with zero loading time.
Complete Privacy
All financial data stays in your browser. Nothing is ever sent to servers, stored, or shared with any third party.
Mobile Friendly
Fully responsive design works perfectly on smartphones, tablets, and desktops. Calculate break-even anywhere, anytime.
No Signup Required
Start analyzing your break-even point immediately without creating accounts, verifying email, or providing personal details.
Break-Even Formula and How It Works
Break-Even Units = Fixed Costs ÷ (Selling Price − Variable Cost) Break-Even Revenue = Break-Even Units × Selling Price Contribution Margin = Selling Price − Variable Cost Per Unit Margin of Safety = (Expected Sales − BE Units) ÷ Expected Sales × 100Calculation Components Explained
- Fixed Costs: Total expenses that remain constant regardless of production volume. Examples include monthly rent for your shop or warehouse, employee salaries, insurance premiums, loan EMIs, and software subscriptions. These must be covered before any profit is earned.
- Variable Cost Per Unit: Costs that change directly with each unit produced or sold. Includes raw material cost, packaging materials, shipping charges, marketplace commissions, and payment gateway fees. Higher production means proportionally higher variable costs.
- Selling Price Per Unit: The revenue generated from selling one unit of your product or service. Setting this correctly is crucial — it must be higher than variable cost per unit for a positive contribution margin and achievable break-even point.
- Contribution Margin: The amount each unit sale contributes toward covering fixed costs. Calculated as selling price minus variable cost. Once enough units are sold to cover all fixed costs, every additional unit's contribution margin becomes pure profit.
- Contribution Margin Ratio: Expressed as a percentage of selling price, this ratio shows what proportion of each rupee of revenue goes toward covering fixed costs and profit. A higher ratio means faster break-even and greater profitability potential.
- Margin of Safety: Measures the buffer between your expected or actual sales and the break-even point. A larger margin of safety indicates lower business risk and greater resilience to unexpected drops in demand or market fluctuations.
Understanding break-even analysis is essential for every Indian entrepreneur, whether you run a chai stall in Mumbai, a Shopify dropshipping store, or a manufacturing unit in Ludhiana. For example, if your monthly fixed costs are ₹50,000, variable cost per unit is ₹300, and selling price is ₹500, your contribution margin is ₹200 per unit. You need to sell 50,000 ÷ 200 = 250 units per month just to cover all costs. Every unit sold beyond 250 generates ₹200 of pure profit.
Real-World Break-Even Calculation Examples
Online Dropshipping Store
Result: Break-even at 72 units | Revenue: ₹57,528
Use Case: Neha runs a dropshipping store selling phone accessories. She needs to sell 72 units per month to cover her fixed costs. Her expected sales of 120 units give her a 40% margin of safety and ₹16,752 monthly profit.
Local Bakery Business
Result: Break-even at 942 cakes | Revenue: ₹1,13,040
Use Case: Rajesh owns a bakery in Pune. With a contribution margin of ₹85 per cake, he needs to sell about 942 cakes monthly. Selling 1,500 cakes gives him ₹47,430 profit and a 37.2% margin of safety.
Freelance Graphic Designer
Result: Break-even at 6 projects | Revenue: ₹18,000
Use Case: Anita is a freelance designer in Bangalore. With a ₹2,500 contribution margin per project, she only needs 6 projects monthly to break even. Completing 12 projects gives her ₹15,000 profit.
Amazon FBA Seller
Result: Break-even at 144 units | Revenue: ₹71,856
Use Case: Vikram sells kitchen gadgets on Amazon India. His contribution margin of ₹279 per unit means he needs 144 sales monthly. At 300 units, he earns ₹43,564 profit with a 52% margin of safety.
What Is a Break-Even Calculator and Why Every Business Needs One
A break-even calculator is a financial planning tool that helps businesses determine the exact point where total revenue equals total costs — the point of zero profit and zero loss. This critical metric, known as the break-even point, tells you the minimum number of units you must sell or the minimum revenue you must generate before your business starts earning profit. It is one of the most fundamental concepts in business finance, taught in every commerce and MBA curriculum across India.
Our free online break-even calculator is designed for a wide range of users including startup founders preparing investor pitches, small business owners planning their monthly targets, e-commerce sellers on Amazon and Flipkart calculating product viability, freelancers setting service rates, students learning cost-volume-profit analysis, and chartered accountants advising clients. Whether you are launching a new product line, opening a restaurant in Delhi, or starting a dropshipping business from your home, understanding your break-even point is the foundation of sound financial decision-making.
What makes this calculator exceptionally useful is its comprehensive analysis beyond just the break-even number. It calculates your contribution margin per unit and as a ratio, shows break-even revenue, and when you enter expected sales, it provides margin of safety analysis and projected profit or loss. The visual revenue composition bars help you understand how your revenue splits between fixed costs, variable costs, and profit at your expected sales volume. This level of insight typically requires expensive accounting software or spreadsheet expertise, but our tool delivers it instantly and free.
The tool is built by experienced professionals who understand the practical needs of Indian businesses. It supports Indian Rupees with proper formatting, handles realistic business scenarios, and provides explanations that make sense for local entrepreneurs. All calculations happen client-side in your browser using standard JavaScript, ensuring your sensitive financial data never leaves your device. No registration, no fees, no data collection — just accurate break-even analysis whenever you need it to make confident business decisions.