About the Multi-Product Break-Even Calculator
What is the Multi-Product Break-Even Calculator?
When a business sells several products, the break-even point depends on the sales mix. This multi-product break-even calculator weights each product's contribution by its share of units sold.
Enter each product's price, variable cost and sales-mix percentage, plus total fixed costs, to see break-even sales and the units needed of each product.
How to use the Multi-Product Break-Even Calculator
- Products (one per line: name, price, variable cost, sales mix %) — one product per line: name, price, variable cost, share of units sold (%). For example: Basic plan, 500, 300, 50. (sample: Basic plan, 500, 300, 50 Standard plan, 900, 500, 30 Premium plan, 1500, 800, 20)
- Total Fixed Costs (₹) (sample: 12,00,000)
- Press Calculate Multi-Product Break-Even (results also refresh as you type). The result card shows the Break-Even Sales (All Products), along with Break-even units (total), Weighted contribution per unit and Weighted contribution margin ratio.
Formula used
Break-even units = Fixed costs ÷ Weighted average contribution per unit
- Weighted contribution = Σ (price − variable cost) × mix share
If the mix shifts towards lower-margin products, the break-even point rises.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Products (one per line: name, price, variable cost, sales mix %) | Basic plan, 500, 300, 50 Standard plan, 900, 500, 30 Premium plan, 1500, 800, 20 |
| Total Fixed Costs (₹) | 12,00,000 |
| Result | Value |
|---|---|
| Break-Even Sales (All Products) | ₹27,33,333 |
| Break-even units (total) | 3,334 |
| Weighted contribution per unit | ₹360 |
| Weighted contribution margin ratio | 43.9% |
Tips for using the Multi-Product Break-Even Calculator
- Push sales of high-contribution products to lower the overall break-even point.
- Update the mix every quarter from actual sales data.