Break-Even Calculator
Find out how many units you have to sell each month before your shop starts making money — and what that works out to in revenue.
Everything you pay whether or not you sell a single unit — rent, staff salaries, electricity, internet, loan EMI, subscriptions.
Costs that only appear when you make a sale — purchase price, packing, delivery charges, payment gateway fees.
Units are rounded up — hitting the number below covers your fixed costs exactly; everything after that is profit at ₹300.00 a unit.
How break-even works
Break-even turns a vague worry about whether the month will be alright into one number you can hold your daily sales up against.
Fixed costs are the hurdle
Rent, salaries, power, internet, software and loan EMIs land every month regardless of footfall. Total them honestly — the most common mistake is leaving out the owner’s own drawings and quietly undercounting the hurdle.
Contribution clears it
Each sale leaves behind its selling price minus its variable cost. That contribution is what chips away at the fixed costs — and the moment the chipping is done, the same amount starts landing as profit instead.
Use a blended unit
Most shops sell hundreds of SKUs, not one. Use your average bill value as the selling price and your average cost per bill as the variable cost — then the answer reads as “bills per month”, which is easier to check against the counter.
The maths
- Contribution per unit: selling price − variable cost.
- Contribution margin: contribution ÷ selling price × 100.
- Break-even units: fixed costs ÷ contribution per unit, rounded up.
- Break-even revenue: break-even units × selling price.
- For a target profit: (fixed costs + target) ÷ contribution per unit.
Work the other half of the number
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Break-even calculator FAQ
Work out the contribution you earn on one unit — selling price minus variable cost — then divide your monthly fixed costs by it. If rent, salaries and power come to ₹1,20,000 a month and each sale contributes ₹300, you break even at 400 units. Every unit after the 400th adds ₹300 straight to profit.