Break-Even Calculator India — FY 2025-26
Find the sales volume needed to cover all costs and start making profit. For India. Uses current FY 2025-26 data.
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Rent, salaries, insurance, subscriptions — costs that don't change with sales
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Price you charge customers per unit/service
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Cost of goods, materials, commission — costs per unit sold
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What profit do you want to make per month?
Common questions — India
What is contribution margin and why does it matter?
Contribution margin = selling price minus variable cost per unit. It's the amount each unit "contributes" to covering fixed costs and eventually generating profit. A product with a high contribution margin means you reach break-even faster with fewer sales.
What counts as a fixed cost vs variable cost?
Fixed: rent, salaries (not commission), insurance, software subscriptions, loan EMIs — don't change with sales volume. Variable: raw materials, packaging, shipping, direct labour (piecework), payment processing fees — change proportionally with sales. Some costs are semi-variable (electricity, overtime) — classify based on dominant behaviour.
How does pricing affect break-even?
Raising price by 10% (while keeping costs the same) dramatically reduces break-even. If contribution margin doubles, break-even units halve. Pricing is the most powerful lever in a business — often more impactful than cost-cutting. Never set prices by just adding a fixed % to costs; price based on value.
What is the margin of safety?
Margin of safety = (Actual sales - Break-even sales) / Actual sales × 100. If you sell 500 units and break-even is 300, margin of safety = 40%. This tells you how much sales can fall before you start losing money. Below 20% is risky; above 30% is comfortable.
Can break-even analysis be used for a service business?
Yes. For services, "units" might be billable hours, client engagements, or projects. Variable cost is the cost of delivering each unit of service (direct labour, materials). Fixed costs are your overhead. The principle is identical.