Marginal Costing Calculator
CMA Marginal Costing Suite
8 Advanced Tools · Instant Formula Insights · Financial Intelligence
Break-even Point
BEP = FC / (SP – VC)
Break-even Results
500.00 Units
₹6,25,000 Sales Value
You must sell exactly 500 units to cover all your costs without making a profit or loss.
Contribution Margin
CM = Sales Revenue – Variable Cost
Contribution Overview
₹3,50,000 Total CM
₹500.00 Per Unit
40.00% CM Ratio
Every unit sold contributes ₹500 directly towards covering your fixed costs and generating net profit.
Margin of Safety
MOS = Actual Sales – Break-even Sales
Business Safety Buffer
₹2,50,000 Buffer
28.57% MOS %
Medium risk: Your sales can drop by 28.6% before the business enters a loss-making zone.
Target Profit (Units)
Units = (FC + Target Profit) / CM per unit
Sales Required (Units)
1,300.00 Units
₹9,00,000 Value
To achieve your desired profit, you must sell 1,300 units in this period.
P/V Ratio
P/V = (Sales – VC) / Sales × 100
Profit Volume Ratio
40.00%
A higher P/V ratio indicates that profitability will grow rapidly as sales increase beyond the break-even point.
Sales for Target (₹)
Sales = (FC + Target Profit) / P/V Ratio
Required Sales Value
₹16,25,000
Maintaining a 40% P/V ratio, the business needs a total turnover of ₹16.25 Lakhs to hit the profit goal.
Cost Indifference Point
Units = Diff in FC / Diff in VC
Indifference Level
1,333.33 Units
At exactly 1,333 units, total costs for Option A and B are identical. Produce more than this? Choose Option B (lower variable cost).
Shut-down Point
Shutdown = Avoidable FC / CM per unit
Critical Threshold
160.00 Units
If anticipated demand falls below 160 units, it is financially better to temporarily halt operations to minimize losses.
System Recommendation Engine
Based on the figures entered in your calculators, our AI maps your data to the optimal Costing Technique discussed in our methodology guide.
Recommended Technique: Activity-Based Costing (ABC)
Your product mix suggests ABC is required for accurate overhead allocation.
Primary Business Benefit: Precise product cost determination leading to competitive pricing strategies.
