Enter fixed costs, variable cost per unit, and selling price per unit to calculate your break-even point in units and revenue. Simple, quick, and designed for SMEs and startups.
This calculator is a simplified tool. Real-world decisions should also consider product mix, credit terms, seasonality, and capacity constraints. BrightBooks can help you build detailed MIS and scenario plans.
Use this tool to estimate break-even for a single product or service:
• Units to break even
• Break-even revenue
• Contribution per unit & contribution margin ratio
Total fixed costs per period (rent, salaries, admin, etc.).
Price at which you sell one unit of your product/service.
Costs that vary with each unit (materials, direct labour, packing, etc.).
For your own reference only (e.g. “per month” or “FY 2025-26”).
The break-even point tells you the minimum sales volume at which your total revenue equals your total costs — no profit, no loss. It is based on three key inputs:
Costs that do not change with the level of production or sales — such as rent, fixed salaries, insurance, and certain admin expenses.
Costs that move with each unit produced or sold — such as raw materials, packaging, shipping per order, and transaction fees.
The price you charge per unit. The difference between selling price and variable cost per unit is your contribution per unit.
Once you know these, the basic break-even formulas are:
Contribution per unit = Selling price − Variable cost
Break-even units = Fixed costs ÷ Contribution per unit
Break-even revenue = Break-even units × Selling price
In practice, businesses often have multiple products and dynamic pricing. BrightBooks Advisory Services can help you extend this concept to multi-product break-even analysis, scenario planning, and profitability dashboards.
If VC ≥ SP, contribution per unit is zero or negative. In that case, a meaningful break-even point does not exist, because each unit sold adds to your loss. You may need to revise pricing or cost structure.
Yes. Treat “unit” as one project, one billable hour, one subscription, etc. Estimate variable cost per unit, and the tool works in the same way.
No. The calculator assumes both SP and VC are either inclusive or exclusive of GST consistently. For more accurate planning, incorporate tax impact separately.
Break-even is a starting point. Strategic decisions should also consider demand, capacity, working capital, competition, and risk. Use this as a planning aid, not as the only criterion.
