What is break-even point in business?

The break-even point is the sales volume (in units or revenue) at which total revenues equal total costs. Below it you lose money; above it you make profit. This calculator helps Indian businesses include GST correctly in the math.

How does GST affect break-even calculation?

GST increases the final price customers pay but does not increase your contribution margin (which is calculated on the taxable value). You must set your selling price high enough so that the pre-GST amount covers costs plus desired profit after accounting for the tax you will remit.

Can I include a target profit in break-even?

Yes. This tool has a 'Target Profit' mode. Enter how much profit you want to make and it will tell you the higher sales volume needed to achieve both break-even and your profit goal.

Free • GST Aware • Instant

Free Break-Even Calculatorwith GST

Find out exactly how many units or how much revenue you need to cover all costs and hit your profit goals — with accurate GST calculations built in.

Fixed + Variable costs

Contribution margin

Target profit mode

GST impact included

Break-Even Calculator

With GST • Contribution Analysis

FIXED COSTS

₹

VARIABLE COST / UNIT

₹

SELLING PRICE / UNIT (excl)

₹

GST RATE

QUICK GST RATES

TARGET PROFIT

Include Target

₹

BREAK-EVEN RESULTS

CONTRIBUTION MARGIN / UNIT

₹0.00

Pays off fixed costs

BREAK-EVEN UNITS

Zero profit, zero loss

REVENUE NEEDED (INCL GST)

₹0.00

Excl: ₹0.00

TO ACHIEVE TARGET PROFIT

UNITS REQUIRED

REVENUE (EXCL GST)

₹0.00

REVENUE (INCL GST)

₹0.00

Track real break-even in Pinbooks

Break-even is an educational planning tool. Actual results depend on sales mix and overheads.

Core Concepts

Break-Even Basics with GST

Contribution Margin

Selling price (excl. GST) minus variable cost per unit. This is the amount each sale contributes toward covering fixed costs.

Break-Even Units

Fixed Costs ÷ Contribution Margin per unit. The number of sales needed before you start making profit.

GST Consideration

Set your selling price correctly before GST. The tool shows both the pre-tax price you need and what the customer actually pays.

Key Formulas Used

Break-Even Units = Fixed Costs ÷
(Selling Price excl. GST − Variable Cost per unit)

With Target Profit:
Units Needed = (Fixed Costs + Desired Profit) ÷
Contribution Margin per unit

Always work with the taxable value (price before GST). GST is collected from the customer and paid to the government separately.

FAQ

Break-Even Calculator FAQs

Why should I include GST in break-even planning? ⌄

Because your final customer price includes GST. If you ignore it, you may underprice and never actually reach your target profit after remitting tax.

What are fixed vs variable costs? ⌄

Fixed costs (rent, salaries, software) stay the same regardless of sales. Variable costs (raw materials, packaging, shipping) rise with every unit sold.

Can this help with pricing decisions? ⌄

Absolutely. Combine it with the Profit Margin Calculator to set a price that both achieves your desired margin and ensures you hit break-even quickly.

Is this useful for restaurants or retailers? ⌄

Yes. Very useful for anyone with significant fixed overheads (rent, staff, utilities) who needs to know minimum monthly sales targets.

Turn break-even insights into real business growth

Pinbooks tracks your actual costs, sales, and margins automatically across invoices, POS, and e-commerce.

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