If you are thinking of starting a business, or are already running a business, then Break Even Calculator can prove to be very beneficial for you. To run any business, it is very important for us to know how much product should be sold so that all the costs (such as cost of goods and other fixed expenses) can be covered. For this, you have to do some calculations, only then you will be able to know this, but if you sit down to do this calculation manually, it can take a lot of time.
That’s why we have created Break Even Calculator for you, so that it can do your calculation in a few seconds and save your time. With the help of this tool, it will be easy for you to understand in business how many units you have to sell to cover your expenses.
You must use this calculator – we have tried to make it easy to use. If you want to calculate it manually (by yourself), then below we have also explained the method of calculating Break Even Point and its formula.
Break-Even Calculator
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How to Calculate Break Even Point?
Here are some methods that can help you calculate the break-even point.
- First of all, calculate how much profit you are making on each unit. For example, if you are selling a product worth Rs. 80 for Rs. 100, then you are making a profit of Rs. 20 on each unit.
- Now decide what your fixed expenses are (like shop rent, electricity etc.). Suppose your total fixed expenses are ₹3000.
- Now divide these expenses by the profit per unit. ₹3000 / ₹20 = 150
- That means you have to sell at least 150 units to cover all your expenses.
- If you want to calculate the total sales amount, then 150 × ₹100 = ₹15000
- That's it. You can easily calculate it using our Break-Even Calculator.
Important information related to Break Even Calculator
To use the Break Even Calculator, you need to know these 3 things:
- ✅ Cost Price: How much did you spend on each product?
- ✅ Selling Price (Revenue Per Unit): How much do you sell that product for?
- ✅ Fixed Costs: Such as shop rent, electricity, internet, salary etc. – which do not change with the sales volume.
How to Use Break Even Calculator?
- First enter the Selling Price (Revenue Per Unit), i.e. how much you sell the product for per unit.
- After this, enter the Cost Price, i.e. the price spent on buying the product per unit.
- Now enter the Fixed Cost, i.e. the money spent on rent, electricity, salary etc.
- Then click on the Calculate button.
- You will immediately see how many units to sell to break even and what will be the total sales value.
🎯 If you want, you can reset all entries and do a new calculation using the "Clear All Changes" button.
Why is break-even analysis important?
- ✔️ For business profit planning
- ✔️ To decide the right price
- ✔️ To plan investment and production strategy
- ✔️ To avoid loss and set targets
Conclusion - Break Even Calculator
If you want to build a profitable business, then definitely use the Break Even Calculator. With its help, you will know how much product you will have to sell so that at least your cost is covered.
➡️ You can also use our tool: Profit Margin Calculator
