⚖️ Break-Even Calculator

Fixed Costs (per period)

Variable Cost per Unit

Selling Price per Unit

Expected / Current Sales (units)

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Break-Even Point (units)

📈 Break-Even Chart

Total Cost Total Revenue Fixed Costs

Profit at Different Sales Levels

Sales Units	Revenue	Variable Costs	Fixed Costs	Total Costs	Profit / Loss

🔍 Sensitivity Analysis

How does the break-even point change with different assumptions?

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📐 Break-Even Formulas

Core Formulas

Contribution Margin per Unit = Selling Price − Variable Cost Break-Even Units = Fixed Costs / Contribution Margin per Unit Break-Even Revenue = Break-Even Units × Selling Price = Fixed Costs / CM Ratio CM Ratio = Contribution Margin / Selling Price Example: Fixed ₹1,00,000, Variable ₹150, Price ₹350 CM per Unit = 350 − 150 = ₹200 BE Units = 1,00,000 / 200 = 500 units BE Revenue = 500 × 350 = ₹1,75,000

Margin of Safety

Margin of Safety (Units) = Actual Sales − BE Units Margin of Safety (Revenue) = Actual Revenue − BE Revenue Margin of Safety % = (Actual − BE) / Actual × 100 A higher margin of safety means your business is further from the break-even point and less risky. Example: Sales 700 units, BE 500 units MoS = (700 − 500) / 700 × 100 = 28.6% Interpretation: Sales can fall 28.6% before making a loss.

Target Profit Calculation

Units for Target Profit = (Fixed Costs + Target Profit) / CM per Unit Revenue for Target Profit = (Fixed Costs + Target Profit) / CM Ratio Example: Target profit ₹50,000 Units needed = (1,00,000 + 50,000) / 200 = 750 units Revenue needed = 750 × 350 = ₹2,62,500

❓ Frequently Asked Questions

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⚖️ Break-Even Calculator