Break-even calculator
Find how many items, and how much in sales, you need each month to cover rent, salaries and other fixed costs. Everything after that is profit.
What is the break-even point?
The break-even point is where your sales just cover all your costs: no profit and no loss. Below it you lose money every month; above it, every sale adds profit.
Fixed and variable costs
| Fixed costs (same each month) | Variable costs (per item sold) |
|---|
| Shop rent | Purchase price of the item |
| Staff salaries | Packing and carry bags |
| Electricity (base), internet, software | Delivery charges |
| Loan EMI | Card and UPI fees, commission |
How to use this break-even calculator
- Add up your fixed costs for a month.
- Enter the average selling price per item, without GST.
- Enter the variable cost per item.
- Enter the days you are open, to see the daily target.
How to reach break-even sooner
- Raise prices a little on items where customers do not compare.
- Buy better: a ₹10 lower cost on each item cuts the units you need.
- Cut fixed costs that do not bring sales.
- Push items with a higher profit per piece.
Break-even units
Fixed costs ÷ (Selling price − Variable cost per item).
₹60,000 ÷ (₹250 − ₹150) = 600 itemsBreak-even sales
Break-even units × Selling price.
600 × ₹250 = ₹1,50,000An estimate for planning. Use your real monthly figures from your sales and expense reports.
Billman shows your real profit
Sales, purchase cost, expenses and Profit & Loss for your shop, so you know where you stand against break-even.
Profit & Loss in Billman →Questions
Break-even calculator FAQ
How do I calculate the break-even point?
Divide your fixed costs by the profit per item (selling price minus variable cost). With ₹60,000 fixed costs and ₹100 profit per item, you need to sell 600 items a month.
Should I use prices with GST?
No. Use prices without GST; the GST you collect is not your income.
My shop sells many items at different prices. What do I enter?
Use your average bill or average item: average selling price and average cost. Your billing software’s sales and profit report gives both.
What if the selling price is below the variable cost?
Then each sale loses money and there is no break-even point. Raise the price or lower the cost.
Billman