Break Even Point Calculator
How many units a month — and how much revenue — before your store covers its fixed costs. The number every pricing, staffing and ad-budget decision starts from.
Directional — fixed costs change with headcount and tools, variable costs with shipping zones and payment mix. Re-run it every quarter; the answer is only as good as the inputs.
Why this is the first number for D2C
Most brands know their revenue and their losses; few know the exact unit count where the two meet. That gap is why ad budgets get cut in a panic instead of being sized to a formula. Break-even connects three decisions: what you can afford to spend acquiring a customer (break-even units × CAC), whether a price change helps (it moves contribution per unit), and whether a fixed cost like a new tool or hire is affordable yet (it moves the units column).
Common questions
What is the break-even point formula?
Break-even units = Fixed costs ÷ (Selling price − variable cost per unit). ₹60,000 fixed, ₹1,000 price, ₹400 variable → 60,000 ÷ 600 = 100 units/month. Break-even sales = units × price = ₹1,00,000/month. Every unit past 100 is profit.
How do I calculate break-even sales in rupees?
Multiply break-even units by the selling price: 100 units × ₹1,000 = ₹1,00,000 a month. Use it to sanity-check marketing plans — if a campaign promises growth but the monthly revenue plan sits below break-even sales, the plan is a cost, not a strategy.
What is contribution margin and why does it matter here?
Contribution per unit = selling price − variable costs (COGS, shipping, payment fees, marketplace commission). It is the rupees each sale contributes to paying fixed costs. The bear-trap is using gross margin and forgetting shipping and fees inflates contribution and gives a false break-even.
Can a discount change my break-even?
Yes — a discount lowers contribution per unit, which raises the units needed to break even. Cut price 10% on a ₹1,000/₹400 product and you need 120 units instead of 100. A sale can push a store below break-even even while order volume climbs. Model the promo with both calculators.
Know Your Number Before You Scale
Get a unit-economics model — break-even, CAC ceiling and margin — built from your real cost stack before the next ad budget meeting.