Tool
Break-even & Contribution Calculator
Find how many units you must sell to cover your fixed costs, what each sale contributes, and how much room you have if sales fall.
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How this calculator works
Every sale first has to pay for the costs that come with it: materials, packing, piece-rate labour, commission. What is left is the contribution. Contributions add up until they cover the fixed costs of the period: rent, salaries, interest. That point is break-even; every unit after it adds its full contribution to profit.
The contribution margin is the share of each rupee of sales left after variable costs. A business with a 40% contribution margin needs ₹2.5 of sales for every ₹1 of fixed cost.
The margin of safety is how far expected sales can fall before you reach break-even. A low margin of safety means a small drop in sales turns a profit into a loss.
The calculation assumes one product, or an average across products. With several products, each has its own contribution, and the sales mix changes the break-even point.
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