Business Break-Even Calculator Nepal
Find out how much you need to sell to cover your costs and reach your break-even point.
Business type — optional
Product / Service
Variable cost covers materials, packaging, delivery, commission per unit.
Monthly Fixed Costs
Custom Expenses
No custom expenses yet — add expenses that aren't listed above.
Price includes VAT. Not tax advice.
Model 13% VAT when relevant.
Target Profit — optional
Your break-even point
—
Enter selling price, variable cost and fixed costs, then click Calculate.
Your Break-Even Point
—
per month
—
Expense breakdown
What Is the Break-Even Point?
The break-even point is where your business covers all costs. Fixed costs stay the same each month (rent, salaries). Variable costs change per unit (materials, packaging). Contribution margin = selling price − variable cost. When you sell exactly fixed costs ÷ contribution margin units, you break even.
How to Calculate Break-Even Point
Multiply by selling price for break-even revenue. Contribution margin ratio helps you see profit per Rs 100 of sales.
Break-Even Example for a Nepal Business
Example — not market data: A shop sells a product at Rs 1,000 with Rs 400 variable cost. Contribution = Rs 600 (60%). If monthly fixed costs are Rs 120,000, break-even = 120,000 ÷ 600 = 200 units → Rs 200,000 revenue. Selling 300 units gives revenue Rs 300,000, variables Rs 120,000, fixed Rs 120,000 → profit Rs 60,000.
Why Break-Even Analysis Is Important for Small Businesses in Nepal
It clarifies pricing, rent and salary decisions, inventory planning and monthly sales targets. Knowing your break-even helps you set realistic goals, judge discounts, and decide when hiring or higher rent is sustainable.
How Many Products Do I Need to Sell to Make a Profit?
Use target profit: Required Units = (Fixed Costs + Desired Profit) ÷ Contribution per unit. For Rs 50,000 profit with the example above: (120,000+50,000)÷600 = 284 units → about Rs 284,000 revenue.
Frequently Asked Questions
What is a break-even point?
The break-even point is where your total revenue exactly covers your total costs — you make no profit and no loss. Selling more than this earns profit; selling less means a loss.
How do I calculate break-even sales?
Break-Even Units = Total Monthly Fixed Costs ÷ (Selling Price per Unit − Variable Cost per Unit). Multiply by your selling price to get break-even revenue. This calculator does it instantly and shows margin, profit and target-profit sales too.
What is fixed cost?
Costs that stay the same each month regardless of sales — like rent, salaries, internet, electricity, insurance, loan payments, marketing and accounting fees.
What is variable cost?
Costs that change with each unit sold — like materials, packaging, delivery, payment processing or commission. If you sell nothing, you pay no variable cost.
What is contribution margin?
Selling price minus variable cost. It is the amount each sale contributes to covering fixed costs and then profit. Ratio = contribution ÷ selling price. Example: Rs 1,000 − Rs 400 = Rs 600 (60%).
How can a small business reduce its break-even point?
Raise selling price (if market allows), lower variable cost per unit, or reduce monthly fixed costs like rent or subscriptions. Even a small drop in variable cost can cut break-even units noticeably.
Can I use this calculator for a restaurant?
Yes. Enter average selling price per dish or per customer, variable cost per serve (ingredients + packaging), monthly fixed costs (rent, staff, utilities), and expected covers. It works for any shop, cafe, restaurant or cloud kitchen.
Can I use this calculator for a service business?
Yes. Think in “projects” or “clients” — selling price per project, variable cost per project (subcontractors, tools), fixed costs per month, and expected projects. The math is identical for freelance or agency work.
Estimates only — actual results depend on real fixed/variable costs, seasonality, discounts, taxes and operations.