Breakeven Analysis
✓ Last verified 14 Sep 2026
The short version
Breakeven is the point at which total revenue exactly equals total costs - no profit, no loss - commonly used to work out how many units need to be sold, or how much income is needed, before something starts actually making money.
Breakeven point = fixed costs divided by (selling price per unit minus variable cost per unit). If a small side business has ₹50,000 in fixed monthly costs and earns a ₹500 margin on each unit sold, it needs to sell 100 units a month just to break even - the 101st unit is the first one that actually contributes profit. The same logic applies beyond formal businesses: figuring out how many freelance projects, tuition students, or rental months are needed before a venture stops costing you money and starts making it. Breakeven analysis tells you the threshold, not whether crossing it is realistic - that requires a separate, honest look at demand.
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