Break-even calculator
Enter your fixed costs, price and cost per unit. See the units and sales you need to break even.
- Profit target option
- Units and sales
- Free, no sign-up
Plan the tax from day one
A side business changes your return. Our experts help salaried people start right.
Questions people often ask
Can a salaried person run a business?
Tax-wise, yes; check your employment contract. Business income goes in the same return as salary.
Can losses reduce my salary tax?
Business losses can't be set off against salary income, but can be carried forward against future business income.
Finding break-even
Contribution covers fixed costs.
- Contribution = price − variable cost.
- Units = fixed costs ÷ contribution.
- Sales = units × price.
Last reviewed 9 October 2026. The rules in this calculator come from these official sources.
- Individuals with business or professional income Income Tax Department
Common questions
What is break-even?
The point where sales cover all costs: no profit, no loss.
How is it calculated?
Break-even units = fixed costs ÷ (price − variable cost per unit).
What is contribution per unit?
Price minus variable cost: what each sale contributes towards fixed costs and profit.
What if my price is below my cost?
You can't break even: every sale adds to the loss. Raise the price or cut the cost per unit.
How do I include a profit target?
Add the target to fixed costs: units = (fixed costs + target) ÷ contribution per unit.