Free tool
Break-even calculator
Fixed costs come every month whether you sell or not. This shows the sales you need before the business makes money, the daily target, and how far sales can fall before you make a loss.
Rent, salaries, loan EMIs, software, the electricity connection charge.
Goods or raw material, packing, freight, commission.
Shows your profit and how far sales can fall before you make a loss.
Result
- Contribution per unit
- ₹150.00
- Contribution margin
- 33.3%
- Units to sell a month to break even
- 1,667
- Sales a month to break even
- ₹7,50,150
- Units a working day, over 26 days
- 65
Break-even units = fixed costs ÷ (price − variable cost), rounded up to a whole unit.
Next step in MatruOS
MatruOS sets this as a monthly target and shows each day how far your actual sales are from break-even.
Track break-even against real sales in MatruOSKeep this result
Method
How this is worked out
Every figure the tool uses is listed here. Assumptions are fields in the tool, so you can change them to match your business.
- Contribution per unit = selling price − variable cost. Break-even units = fixed costs ÷ contribution, rounded up.
- Daily target = break-even units ÷ working days, set to 26 to start.
- Margin of safety = expected units − break-even units, as units and as a share of expected sales.
- It assumes one product, or an average price and cost across your products, and fixed costs that do not change within the month.
Questions
Questions people ask
What counts as a fixed cost?
Costs that do not change with sales in the month: rent, salaries, loan EMIs, software and electricity connection charges.
I sell many products. Does this still work?
Use the average selling price and average variable cost across what you sell. For a product-by-product view, MatruOS works it out from your own sales.
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