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Break-even Calculator

Calculate the break-even point for any Tanzanian business — fixed costs, variable costs, sale price.

Rent, salaries, internet, license — costs that don't change with volume.

How to calculate break-even

1
Enter monthly fixed cost, variable cost per unit, selling price per unit.
2
Contribution per unit = price − variable.
3
Break-even units = fixed cost ÷ contribution.
4
Break-even revenue = break-even units × price.

What break-even tells you

The break-even point is the sales volume at which your total revenue exactly covers total cost — no profit, no loss. Below it, you are subsidising your business; above it, every shilling of contribution falls to the bottom line. It's the most useful single number for pricing, budgeting and "should I take this loan" decisions.

The formula

Break-even units = Fixed cost ÷ (Price − Variable cost)

The denominator is called contribution per unit — the cash each sale leaves for fixed costs and profit.

Common Tanzanian SMB blind spots

  • Forgetting NSSF, NHIF, SDL, WCF in the fixed-cost line — see the Full Payroll Calculator.
  • Treating rent as variable — it's almost always fixed for a 12-month lease.
  • Ignoring mobile-money fees — see the Mobile Money Fees tool.
  • Quoting margins on cost (markup) instead of price (margin) — see the Markup vs Margin tool.

Use break-even for pricing decisions

"If I drop the price 10%, I need to sell X% more units just to break even." That sentence — driven by the contribution margin — is the right way to evaluate every discount, promo or wholesale negotiation.

Tawala's accounting module gives you live break-even and contribution dashboards across products and outlets.

Take this further

Break-even moves whenever your cost base does. Tawala Finance recalculates contribution and break-even from live figures rather than from the assumptions you had last quarter.

Not sure which module fits? Compare every option under Tawala solutions, or find the setup for your sector under Tawala by industry.

Frequently asked questions

What is the break-even point?
The sales volume at which total revenue equals total cost — no profit, no loss.
What inputs do I need?
Fixed cost per period, variable cost per unit, selling price per unit.
Why does break-even matter?
It tells you the minimum sales you must hit to keep the lights on — critical for pricing and budgeting.
Can it handle multiple products?
Use a weighted-average contribution margin for a multi-product mix.
Where does VAT fit in?
Use net (excluding VAT) prices and costs to keep the analysis clean.

Want this automated for your business?

Tawala bundles every Tanzanian tax, payroll and compliance calculation — and files it for you. From TZS 75,000/month.

Download Break-even

Free, no sign-up, no email required. The PDF includes your figures and the current Tanzania tax bands, so you can file it or hand it to your accountant.

Enter your figures above first — the download includes whatever the calculator is currently showing.

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