Find out exactly how many units you need to sell to cover your costs. See contribution margin, margin of safety, and your profit or loss at any sales volume.
The break-even point is where total revenue equals total costs — neither profit nor loss. Every unit sold beyond that point generates pure profit. Understanding your break-even helps you set prices, plan marketing spend, decide whether to launch a product, and know when your business becomes sustainable.
The contribution margin (selling price minus variable cost per unit) is the key metric. A $50 product with $20 variable cost has a $30 contribution margin — meaning each sale contributes $30 toward covering fixed costs. Once enough units are sold to cover all fixed costs, those $30 become profit.
Open a free demat account · ₹20 flat fee per trade · No AMC charges