When will your business start making money? Our free Break-Even Calculator helps you determine the exact moment your total revenue equals your total expenses. Whether you are launching a new startup in Nepal or scaling an e-commerce store globally, knowing your break-even point is critical for setting sales targets and pricing your products effectively. Simply enter your fixed and variable costs to see how many units you need to sell to reach the break-even point.
Why the Break-Even Point Matters
Risk Management
It shows you if your business idea is realistic. If you need to sell 10,000 units a month just to break even, but your market only has 1,000 people, you need a new plan.
Pricing Strategy
If your break-even point is too high, it might be a sign that you need to raise your prices or lower your variable costs.
Goal Setting
It gives your sales team a clear "baseline" target every month a number everyone can rally around.
Frequently Asked Questions
What happens after I reach the break-even point?
Every sale made after the break-even point contributes directly to your net profit.
How do I lower my break-even point?
You can lower it by either reducing your fixed costs (like moving to a cheaper office) or increasing your contribution margin by raising prices.
Is a lower break-even point better?
Generally, yes. A lower break-even point means less risk, as you need fewer sales to cover your expenses.