What counts as a fixed cost vs a variable cost here?

Fixed costs are expenses that don't change with sales volume, like rent, salaries and insurance. Variable cost per unit is the cost that scales with each unit sold, like materials, packaging or per-unit shipping. Mixing fixed overhead into the variable cost field will understate your break-even point.

What if my variable cost per unit is higher than my selling price?

The formula divides fixed costs by (price − variable cost), so if variable cost exceeds price, that denominator is negative and there's no break-even point — you lose money on every unit sold, no matter the volume, until you raise the price or cut variable costs.

Break-even Calculator

Find how many units you need to sell to cover your fixed costs.

How this is calculated

Break-even units = Fixed costs ÷ (Price − Variable cost per unit)

Assumptions used in this calculation

Constant unit economics: Assumes selling price and variable cost per unit stay constant at every volume; it doesn't model bulk-purchase discounts, step-fixed costs, or price changes as volume scales.

About this calculator

The break-even calculator finds the number of units and revenue needed to cover fixed costs, given a selling price and variable cost per unit.

Worked example

₹50,000 fixed costs, ₹500 price, ₹300 variable cost

Result: Break-even = 250 units

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Frequently asked questions

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Break-even Calculator

About this calculator

Frequently asked questions

What counts as a fixed cost vs a variable cost here?

What if my variable cost per unit is higher than my selling price?

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