How to use Break-even Calculator
Each sale contributes its selling price less the variable cost towards fixed costs. Divide fixed costs by this contribution to find the break-even volume. The tool rounds up because a fraction of a saleable unit may not be possible.
Use fixed costs for one defined period, such as a month. Prices and variable costs must use the same tax basis. If variable cost equals or exceeds the selling price, selling additional units cannot cover positive fixed costs in this model.
The formula
A worked example
Fixed costs for the period (₹): 50000 · Selling price per unit (₹): 500 · Variable cost per unit (₹): 300
Units needed to break even: 250
Whole units are rounded up. All costs and revenue must use the same time period.
Questions about this calculation
Why does the calculator reject my costs?
The selling price must exceed variable cost for each unit to contribute towards fixed costs.
Which fixed-cost period should I use?
Use the period you want to analyse, and compare the result with sales in that same period.
Formula checks: 2026-10-08. Assumptions & corrections.