Break-even

The volume at which contribution exactly covers fixed costs and profit is zero.

A business with ₹42,00,000 of monthly fixed costs earning ₹90 of contribution per order breaks even at about 46,667 orders a month.

The calculation is the fastest way to test whether a plan is plausible, because the required volume can be compared to market size, to capacity, and to what competitors achieve.

It also shows the shape of the risk. A business breaking even at 80% of its capacity has almost no margin for a demand disappointment.