Break-Even Point (BEP) Calculator

The break-even point is where total revenue exactly equals total costs — no profit, no loss. It matters because it turns the vague question 'when will my business make money?' into a concrete daily target. If your BEP is 400 units a month, roughly 13 units a day must sell before the first rupiah of profit. Without it, it's easy to feel busy while quietly subsidising every sale.

The formula is simple: BEP in units = monthly fixed costs divided by contribution margin per unit, where contribution margin = selling price minus variable cost per unit. Example: fixed costs Rp8,000,000, price Rp35,000, variable cost Rp15,000. The contribution margin is Rp20,000, so BEP = Rp8,000,000 / Rp20,000 = 400 units a month, equal to Rp14,000,000 in revenue.

They're often confused. BEP is monthly and operational: how many units must sell this month to cover this month's costs. Payback is cumulative: how long profits take to accumulate enough to recover your initial investment — fit-out, equipment, opening stock. A business can clear break-even every month yet only recover its start-up capital two years later. This calculator does both if you fill in the initial capital field.

Margin of safety is the gap between your sales target and break-even, expressed as a percentage. If your BEP is 400 units and your target is 600, the margin of safety is about 33% — sales could drop by a third before you start losing money. The smaller it gets, the more fragile you are to a miss. Below 20% is usually a position worth watching closely.

Usually because the contribution margin is razor-thin or negative. If your price sits only slightly above variable cost, each unit contributes very little toward fixed costs, so the units required balloon. If the price equals or falls below variable cost, break-even is unreachable at any volume — selling more only deepens the loss. In that case the thing to fix is the price or the cost structure, not the sales target.