Break-Even Analysis: The Math Every Business Owner Needs

Break-even is the sales volume where total revenue equals total costs. Formula: Break-even units = Fixed Costs ÷ (Selling Price − Variable Cost). Example: a cafe with ₹1,00,000 monthly fixed costs selling ₹200 coffee at ₹60 variable cost needs 1,00,000 ÷ 140 = 715 cups to break even.