Find exactly how many units you need to sell to cover your costs and start making profit. Instant break-even analysis.
Enter all fixed costs that do not change with volume — rent, salaries, insurance, loan repayments, software subscriptions.
Enter variable cost per unit (materials, packaging, shipping, commissions) and the price you charge per unit sold.
Instantly see break-even units, break-even revenue, contribution margin, and margin of safety if you enter expected sales.
The ToolCentrix Break-Even Calculator is a free tool that helps business owners, entrepreneurs, finance students, and product managers find the exact point at which total revenue equals total costs. Below the break-even point, the business runs at a loss. Above it, every additional unit sold generates profit.
The break-even formula: Break-Even Units = Fixed Costs ÷ Contribution Margin per Unit, where Contribution Margin = Selling Price − Variable Cost per Unit. Break-Even Revenue = Break-Even Units × Selling Price. This is one of the most fundamental calculations in business finance.
Fixed vs variable costs: Fixed costs stay constant regardless of how many units you produce or sell — rent, full-time salaries, equipment leases, insurance, and loan repayments. Variable costs rise and fall with production — raw materials, packaging, shipping, freelancer fees, and sales commissions. Accurately categorising your costs is the most important step in break-even analysis.
Contribution margin: The contribution margin is how much each unit sold contributes toward covering fixed costs and generating profit. A product that costs ₹200 to make and sells for ₹500 has a contribution margin of ₹300 per unit. With ₹5,00,000 in fixed costs, break-even = 5,00,000 ÷ 300 = 1,667 units.
Margin of safety: If you enter your expected sales volume, the calculator also shows your margin of safety — how far your expected sales are above the break-even point. A higher margin of safety means more buffer before losses begin. It is expressed both in units and as a percentage of expected sales.
Practical applications: Use break-even analysis before launching a new product, setting minimum order quantities, evaluating pricing changes, planning marketing spend, or deciding whether to expand capacity. It is also a key input in any business plan or investor pitch.
Free to use, no sign-up required, and all calculations are private and instant in your browser.
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