Marginal Costing Calculator
CMA·marginal costing (stable)
eight tools · formula + interpretation · crash-free
Break-even
BEP units = FC / (SP – VC)
break-even
500.00 units
₹625,000
Sell 500 units to cover all costs.
Contribution
CM = Sales – Variable cost
contribution
₹350,000
₹500.00
40.00%
Each unit contributes ₹500 to fixed cost & profit.
Margin of safety
MOS = Actual Sales – BEP Sales
safety
₹250,000
28.57%
Medium risk: sales can drop 28.6% before loss.
Target profit
Units = (FC + Target)/CM per unit
required sales
1,300.00 units
₹900,000
Sell 1,300 units to earn ₹400,000 profit.
P/V Ratio
P/V = (Sales – Variable cost)/Sales
P/V Ratio
40.00%
Higher P/V means faster profit growth.
Sales for target
Req sales = (FC + Target) / P/V
required sales
₹1,625,000
With 40% P/V, need ₹16.25L sales.
Indifference point
Units = ΔFC / ΔVC (A vs B)
indifference units
1,333.33 units
At 1,333 units both options cost the same.
Shut-down point
Shut-down = Avoidable FC / (SP – VC)
shut-down units
160.00 units
Below 160 units, better to shut down.
intelligent recommendation
Activity-Based Costing (ABC)
Your product mix suggests ABC for accurate overhead allocation.
benefit: precise product cost, better pricing.
