Calculate the break-even sales volume in units and revenue from fixed and variable costs.
Result
Calculated as Fixed Costs divided by Unit Contribution Margin.
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Break-Even Units = Fixed Costs / (Selling Price - Variable Cost per Unit)
Fixed costs ₹1,50,000, Selling price ₹500, Variable cost ₹200.
Break-Even: 500 Units | Break-Even Sales Revenue: ₹2,50,000 | Contribution Margin: ₹300 (60%).
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Open calculatorThe break-even point is the level of sales where total revenues exactly equal total expenses (fixed + variable costs), resulting in zero profit and zero loss.
Contribution margin is the selling price per unit minus variable cost per unit. It represents the portion of sales revenue available to cover fixed overheads and generate profit.
Break-even analysis is the cornerstone of startup business plans, pricing strategy, and manufacturing expansions. Knowing your break-even volume establishes the minimum operational threshold required to stay solvent.