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Break-Even & Pricing Calculator

How many units cover your costs, how many reach your target, and exactly how much extra volume a discount quietly demands in return.

How to use this

You will need: your monthly fixed costs, and the price and variable cost of one unit of whatever you sell. A unit can be anything you sell repeatedly — a case, a kilo, a service contract, a billable hour — as long as you use the same unit for both the price and the cost.

  1. Add up your monthly fixed costsEverything that stays the same whether you sell one unit or a thousand: rent, salaries, loan EMIs, software, insurance, professional fees. If a cost rises when you sell more, it does not belong here.
  2. Enter your selling price per unitUse what you actually realise on average after normal trade discount, and leave GST out of it. If you sell the same item at different prices to different customers, use the weighted average rather than the list price.
  3. Enter your variable cost per unitPurchase cost, inward freight, packing, sales commission — whatever goes up by one unit’s worth each time you sell one more. If your price is at or below this number the tool will stop you, because no volume can ever recover fixed costs.
  4. Add your current monthly volumeOptional, but it changes the answer from theory into your situation. With it you also get your current profit and your margin of safety, and the price chart shows what it takes to hold today’s profit rather than merely to break even.
  5. Add a monthly profit targetAlso optional. Enter what the business needs to earn rather than what it earns now, and the tool works out the volume that target requires.
  6. Press CalculateYou get your break-even point, the price sensitivity chart, and a plain reading of what the numbers imply.

If you sell many different things run this separately for each product line or principal rather than blending everything into one average unit. A blended figure hides the line that is losing money, which is usually the reason for running the exercise in the first place.

Your cost and price

Work in whatever unit you sell in — a case, a kilo, a subscription, an hour. Nothing leaves your browser.

Optional, but worth adding

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This is one snapshot.
We build the live version.

Krishwealth Trades gives growing businesses a monthly MIS dashboard, so these numbers update themselves instead of being worked out once a year.

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What your results mean

Contribution per unit
Price minus variable cost. What one sale leaves behind to put towards your fixed costs. It is not profit — profit only begins once the accumulated contribution has covered every fixed cost for the month.
Contribution margin
Contribution as a percentage of price. This single number governs how violently your profit reacts to a discount. Under 20 per cent, small changes in purchase cost or freight are enough to remove the profit entirely.
Break-even units and revenue
How many units, and how much sales value, you need each month before you earn a rupee. Everything sold beyond that point contributes to profit at the full contribution per unit, which is why the units immediately after break-even are worth far more than the ones before it.
Margin of safety
The gap between what you sell now and your break-even point, as a percentage of current sales. Thirty per cent means sales could fall by almost a third before the business starts losing money. Under 20 per cent, one lost customer or one slow quarter is enough to matter.
The price sensitivity chart
How many units you would need at each price to stand exactly where you stand today. The asymmetry is the lesson: because a discount comes out of contribution rather than out of revenue, cutting the price by five per cent usually demands far more than five per cent extra volume, and the thinner your margin the worse the trade becomes.
Units for your target profit
Fixed costs plus the profit you want, divided by contribution per unit. If that volume looks unreachable, the answer lies in the price or the cost rather than in working harder at the same price.

This calculator gives an indicative estimate based only on the figures you enter. It is not professional advice and must not be relied upon for a filing, a loan application or any statutory position. All calculations run inside your browser and are never sent to Krishwealth Trades unless you choose to download a report.