# Break Even Calculator: Units and Sales to Cover Costs > Break even calculator: enter fixed costs, price and variable cost per unit for the units and sales needed each month, margin of safety and target profit. Source: https://trykosh.com/tools/break-even-calculator Free tool - Business and GST # Break-even calculator Find how many units you need to sell each month before the business stops losing money, and how many more it takes to earn the profit you want. Rules checked 25 October 2026Free - no sign-upRuns in your browser Break-even units a month 600 Sales of INR 7,20,000 a month Contribution per unit**INR 500.00** Contribution margin**41.7%** Margin of safety**25%** Fixed costs a month INR 3,00,000 Contribution per unit (price − variable cost) INR 500.00 Break-even units 600 Break-even sales INR 7,20,000 Profit at 800 units INR 1,00,000 Profit around break-even Units a month Sales Profit 300 INR 3,60,000 −INR 1,50,000 450 INR 5,40,000 −INR 75,000 600 INR 7,20,000 INR 0 750 INR 9,00,000 INR 75,000 900 INR 10,80,000 INR 1,50,000 At 800 units you're 200 units above break-even. ## Upload your statement and Kosh does this for you. Upload your bank statements and Kosh separates business from personal spending and keeps your tax and GST dates in view. [Start free](/signup?via=tool-break-even-calculator) ## How the break-even calculator works Split your costs in two. Fixed costs stay the same whatever you sell: rent, salaries, loan EMIs, software subscriptions. Variable costs rise with every unit: raw material, packing, delivery, commission. Each unit you sell contributes its price minus its variable cost towards the fixed costs. That's the contribution per unit. Divide fixed costs by it and you have the break-even volume: INR 3 lakh of fixed costs and INR 500 of contribution per unit means 600 units a month. To earn a profit on top, add the target to the fixed costs before dividing. The calculator also compares break-even with the volume you expect to sell. The gap, as a share of expected sales, is the margin of safety: how far sales can fall before you make a loss. The table shows profit at half, three-quarters, one and a half times break-even and so on, so you can see how fast profit grows once the fixed costs are covered. Use prices and costs excluding GST. Break-even units = fixed costs / (price − variable cost per unit) Units for a target (fixed costs + target profit) / (price − variable cost) Margin of safety (expected units − break-even units) / expected units ## Worked example: Farhan's cloud kitchen in Hyderabad Farhan's kitchen has INR 4.5 lakh of fixed costs a month: rent, four cooks' salaries and the equipment EMI. His average order is INR 320 after GST, and ingredients, packing and the aggregator's cut come to INR 190. Each order contributes INR 130, so he breaks even at 3,462 orders a month. To make INR 1 lakh profit he needs 4,231 orders. He expects 4,200, which leaves a 17.6% margin of safety and INR 96,000 of profit. Units a month for your target profit 4,231 Sales of INR 13,53,920 a month Contribution per unit**INR 130.00** Contribution margin**40.6%** Margin of safety**17.6%** Fixed costs a month INR 4,50,000 Contribution per unit (price − variable cost) INR 130.00 Break-even units 3,462 Break-even sales INR 11,07,840 Units for INR 1,00,000 profit 4,231 Profit at 4,200 units INR 96,000 At 4,200 units you're 738 units above break-even. [Load this example into the calculator ->](?fixed=450000&price=320&variable=190&target=100000&expected=4200#calculator) ## Good to know - Count your own salary as a fixed cost. A business that breaks even only because the owner draws nothing hasn't really broken even. - Raising the price usually moves break-even more than cutting fixed costs: a INR 20 price rise in the example adds 15% to contribution per order. - Seasonal businesses should check break-even month by month. An annual average can hide months that need funding. - Semi-variable costs such as electricity or part-time staff can be split: put the minimum bill in fixed costs and the rest in variable cost per unit. ## Frequently asked questions What is the break-even point? It's the sales level at which total revenue equals total costs, so profit is zero. Below it you lose money; above it every extra unit adds its contribution to profit. How do I calculate break-even in rupees rather than units? Divide fixed costs by the contribution margin ratio, which is contribution per unit / price. With INR 3 lakh of fixed costs and a 41.7% contribution margin, break-even sales are about INR 7.2 lakh a month. What if my variable cost is higher than my price? Then there is no break-even point: every sale deepens the loss, and more volume makes it worse. You need to raise the price or cut unit costs before scaling. How is break-even different for a service business? Use a billable hour or a project as the unit. Price is your rate, variable cost is anything you spend per hour or project (freelancer fees, travel, tools), and fixed costs are your office, salaries and subscriptions. ## Sources and assumptions - [CBIC GST portal](https://cbic-gst.gov.in/) Rules and rates last checked on 25 October 2026. Results are estimates for planning and education, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not a SEBI-registered investment adviser and does not offer personalised investment advice, hold your money or execute trades. Markets carry risk; read scheme documents carefully and consult a registered adviser before acting.