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Break-Even Analysis

Find the revenue needed to cover fixed and variable costs.

Break-Even Analysis
Find the sales volume needed to cover all costs and reach your profit target.
Break-Even
Rent, salaries, insurance, depreciation, etc.
Raw materials, direct labour, packaging, etc.
Contribution Margin
Per unit contribution
₹200.00
Contribution margin ratio
40.0%
Break-Even Point
Units to sell
2,500
Revenue needed
₹12,50,000
To Reach Target Profit
Units to sell
3,500
Revenue needed
₹17,50,000

Break-even analysis is for a single product. For multi-product businesses, use weighted average contribution margin. Taxes not included — subtract tax from profit target for after-tax planning.

FAQ

Frequently Asked Questions

Quick answers to the questions we hear most often.