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Break-Even Point Calculator

Tax & Financial Free Updated 1 Sep 2026
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ⓘ About this tool 🔄 Last updated 1 Sep 2026 ✓ Reviewed by TopToolAI Team

Find the break-even point for a product or business — how many units you need to sell to cover your fixed costs — from your fixed costs, selling price and variable cost per unit. A product selling at PKR 500 with a variable cost of PKR 300 per unit and PKR 200,000 in fixed costs needs 200,000 divided by (500-300), or 1,000 units sold, before the business turns a profit.

How to use Break-Even Point Calculator

Step-by-step guide to the boxes below. Open it only if you need help.

  1. 1
    Fixed costs Number

    Costs you pay no matter how much you sell, such as rent, salaries and subscriptions. Add them up for one month or one year and be consistent.

    Example: 5000

  2. 2
    Price per unit Number

    What the customer pays you for one unit.

    Example: 25

  3. 3
    Variable cost/unit Number

    What it costs you to make or deliver one unit (materials, packaging, delivery). This must be lower than your price, otherwise you can never break even.

    Example: 10

  4. 4
    Press “Calculate”

    Click the button under the boxes. If something is missing or not valid, a short message tells you which box to fix.

  5. 5
    Read your result

    You see how many units you must sell to cover your costs. Sell less and you lose money, sell more and you profit. Change any box and try again to compare different numbers.

Break-Even Point Calculator FAQs

What counts as a fixed cost?
Costs that don't change with how much you sell — rent, salaries, insurance. Variable costs (materials, packaging) scale with each unit sold.
What happens if I lower my price?
A lower price shrinks the profit per unit, which raises the number of units you need to sell to break even — try a few price points to compare.
What if my variable cost is higher than my selling price?
You'd have a negative profit margin per unit, meaning you can never break even no matter how many units you sell — the price needs to be raised or costs cut.
Does this account for taxes on profit?
No — this is a pre-tax break-even calculation focused on covering costs, not on net profit after tax.

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