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ToolKit KE

Break-Even Calculator

Find how many units you must sell before your business stops making a loss.

Calculated locally. Nothing you enter is uploaded.

KES

Rent, salaries, licences.

KES
KES

Break-even point

Units to break even

267

Ksh 213,333 in sales

Contribution per unit
Ksh 450
Break-even revenue
Ksh 213,333
Contribution ratio
56.3%

Profit at different volumes

Units soldRevenueTotal costProfit
133Ksh 106,400Ksh 166,550-Ksh 60,150
200Ksh 160,000Ksh 190,000-Ksh 30,000
267Ksh 213,600Ksh 213,450Ksh 150
333Ksh 266,400Ksh 236,550Ksh 29,850
400Ksh 320,000Ksh 260,000Ksh 60,000
533Ksh 426,400Ksh 306,550Ksh 119,850

How this tool works

Contribution margin is selling price minus variable cost per unit. Break-even units is fixed costs divided by that margin, and break-even revenue is those units multiplied by the selling price.

The projection table shows profit at half, three quarters, one, one and a quarter, one and a half and two times the break-even volume.

Frequently asked questions

What counts as a fixed cost?
Costs that do not change with how much you sell — rent, salaries, licences, internet, loan repayments.
What is contribution margin?
Selling price minus the variable cost of one unit. It is the amount each sale contributes towards covering fixed costs.
Why does it say the business is not viable?
If the variable cost per unit is equal to or higher than the selling price, every sale loses money and no volume will break even.

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