GenzeeBreak-Even Point Calculator
Find out how many units you need to sell to cover your costs, from fixed costs, selling price and variable cost per unit.
Break-even point
1,000 units
PKR 1,200,000 in revenue, to cover all costs with zero profit
What break-even point means
The break-even point is the sales volume at which total revenue exactly equals total costs — no profit, no loss. Selling below that volume means a loss; selling above it means profit. It's one of the most fundamental numbers in evaluating whether a business idea or pricing plan is viable before committing significant money to it.
Fixed costs vs. variable costs
Fixed costs stay the same regardless of how many units are sold — rent, salaries, insurance. Variable costs scale directly with each unit sold — materials, packaging, per-unit shipping. The difference between the selling price and the variable cost per unit is the "contribution margin" — how much each individual sale contributes toward covering the fixed costs before any profit begins.
How to use the result
Once fixed costs are covered at the break-even point, every additional unit sold contributes its full margin directly to profit — which is why understanding this number changes how a price change or a cost increase should be evaluated. A price cut that looks appealing for competitiveness might raise the break-even point substantially, requiring meaningfully higher sales volume just to reach the same starting position.
Frequently asked questions
What if my variable cost is higher than my price?
Then break-even is mathematically impossible — every unit sold loses money regardless of volume, since there's no positive contribution margin to work with. The price or the variable cost needs to change before the business model can work.
Does break-even point include a profit target?
No — the standard break-even point is where profit is exactly zero. To find the sales volume needed for a specific profit target, add that target amount to the fixed costs before dividing by the contribution margin.
How often should I recalculate this?
Whenever fixed costs, pricing, or variable costs change meaningfully — a rent increase, a supplier price change, or a pricing strategy shift all move the break-even point and are worth recalculating around.