Break-Even Point Calculator
Planning & StrategyFind out exactly how many units or how much revenue you must generate to cover all operational costs before turning a profit.
Units
Revenue needed: ₹%
of each sale covers fixed costsUnits
₹ revenueNegative Contribution Margin!
Your Variable Cost (₹) exceeds your Selling Price (₹). You are losing money on every single unit sold. Increase your price or reduce variable production costs.
How to Lower Your Break-Even Point
- Reduce Fixed Overhead: Renegotiate office leases, switch to remote teams, or automate invoicing with GST Maker to lower administrative payroll.
- Bulk Sourcing & Discounts: Negotiate volume supplier discounts on raw materials to decrease variable cost per unit.
- Value-Add Price Increases: Even a modest 5%–10% price bump significantly expands your contribution margin, drastically reducing the units needed to break even.
Related Business & Tax Tools
View All ToolsHow to Use This Tool
Simple steps to calculate and verify
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1
Enter Monthly Fixed Overheads Input non-negotiable monthly expenses (rent, permanent salaries, loan EMIs, insurance) that do not change with sales.
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2
Enter Selling Price Per Unit Input the average revenue earned per unit sold or billable client retainer.
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3
Enter Variable Cost Per Unit Input direct expenses incurred per unit (raw materials, packaging, delivery, commissions).
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4
View Break-Even Volume See the exact number of units and rupee revenue needed each month to achieve zero loss and full cost recovery.
Pro Tips & Statutory Advice
Practical business & compliance advice
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Focus on Contribution Margin Contribution Margin = `Price - Variable Cost`. Each unit sold contributes this amount towards paying off your fixed monthly overheads.
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Variable Costs Cushion Downside Converting fixed costs into variable costs (e.g. outsourced delivery or revenue-share commissions) drastically lowers your break-even point.
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Add a 20% Working Capital Buffer Reaching break-even covers operational costs, but you need an additional 15-20% margin to build reserves and reinvest in stock.
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Set Daily Sales Targets Divide monthly break-even units by working days to give your sales team clear daily performance benchmarks.
Frequently Asked Questions
Everything you need to know about break-even analysis for Indian businesses.
What is a Break-Even Point (BEP)?
The break-even point is the exact production level or sales volume at which total revenue equals total expenses (Fixed Costs + Variable Costs). At this point, your business makes exactly ₹0 in net profit — you have neither lost nor gained money.
Should I include GST in Break-Even calculations?
Always use pre-tax (GST-exclusive) figures. GST collected from customers is not your revenue; it is a government liability. Likewise, eligible GST paid on raw materials is recoverable as Input Tax Credit (ITC), so it should not be counted as a cost.
What is the Contribution Margin?
Contribution margin is the selling price per unit minus variable cost per unit. It represents the money generated from each unit sold that "contributes" toward paying off your fixed monthly overhead.