Free Tool · Pricing, Profitability & Portfolio

Break-Even Sales & Margin of Safety Calculator

The exact sales level where you stop losing money — and how far above it you are.

The most important number a founder can hold in their head: the sales level where the business stops losing money. Enter fixed costs and unit economics; get break-even units, break-even revenue and how much room you have above it.

For: CFO / Founder·Free — no sign-up for results·Related service: Commercial Excellence
Break-even position
Contribution ratio40%
Break-even units / month1,250
Break-even revenue / month₹12.5 L
Margin of safety0%

Assumes a fixed price/cost per unit and (for mixes) a constant sales mix. Review monthly as costs move.

Your numbers stay in your browser until you choose to download or share.

How it works

Contribution ratio = (price − variable cost) ÷ price. Break-even revenue = fixed costs ÷ contribution ratio. Break-even units = fixed costs ÷ contribution per unit.

Margin of safety = how far current sales sit above break-even. Under 15% is fragile — a bad month wipes out profit.

For mixed portfolios the model assumes a constant sales mix — if the mix shifts toward low-margin products, break-even moves up. That assumption is printed on the output.

Worked example

A services firm with ₹5 L monthly fixed costs and 40% contribution ratio breaks even at ₹12.5 L monthly revenue. At ₹15 L actual, the margin of safety is 16.7% — one lost retainer from the edge.

Illustrative figures, not a client outcome.

Questions, answered

Should marketing spend be fixed or variable?

Retainers and salaries are fixed; per-order ad spend is variable. Splitting them honestly is the difference between a real break-even and a comforting one.

How do I lower break-even?

Three levers: raise contribution per unit (price up or variable cost down), cut fixed costs, or shift mix toward high-contribution products. The scenario table quantifies each.

Version 1.0 · Reviewed 2026-10 · Methodology is fixed and version-controlled; results depend on your inputs.

Know your break-even. Now build the system that keeps you above it.

BLEZZINGS runs this analysis inside a focused engagement — with your data, your market and a plan to act on it.