Break-Even Point (BEP) Calculator
Tip: BEP Units = Fixed Costs ÷ (SP – VC). Contribution Margin Ratio = (SP – VC) ÷ SP.
Contribution / Unit
Break-Even Units
Break-Even Revenue
Planned Units — Profit/Loss
- Contribution / Unit (CMu) = SP − VC
- Contribution Margin Ratio (CMR) = (SP − VC) ÷ SP
- Break-Even Units = Fixed Costs ÷ CMu
- Break-Even Revenue = Break-Even Units × SP
- Profit (at Planned Units) = (Planned Units × CMu) − Fixed Costs
- Margin of Safety = Planned Units − Break-Even Units (rounded up)
What is it & why use it?
Find the break-even point for your business based on fixed costs, variable costs, and sales price using our Break-Even Point Calculator. This tool on Calci.in helps startups and businesses analyze cost structures and profitability.
Formula (explained)
Break-Even Point (Units) = Fixed Costs ÷ (Selling Price – Variable Cost per unit)
Variables: Fixed Costs = overheads, Selling Price = price per unit, Variable Cost = cost per unit.
Example calculation
Fixed Costs = ₹5,00,000, Price = ₹500, Variable Cost = ₹300 → BEP = 5,00,000 ÷ (500 – 300) = 2,500 units.
Benefits & use cases
• Plan business profitability
• Set sales targets
• Understand cost structure
Related calculators on Calci.in
ROI Calculator
Profit Margin Calculator
Markup & Margin Calculator
External references (authority sources)
Investopedia – Break-Even Analysis
Corporate Finance Institute – Break-Even Point
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FAQs
Q1: What is break-even point?
A: It’s the level of sales where total revenue = total costs.
Q2: Why is BEP important?
A: It helps businesses know minimum sales needed to avoid losses.
Q3: Can BEP change over time?
A: Yes, with changes in fixed costs, variable costs, or selling price.
Q4: Is higher BEP bad?
A: Not always, but it means higher risk before making profits.