Break-Even Calculator (VND)
If you are opening a café, a shop or an online store in Vietnam, the first number that decides whether you survive is not your profit margin — it is how many units you must sell to stop losing money. That number is the break-even point: the sales volume at which total contribution margin exactly covers your fixed costs, profit is zero, and every additional unit sold starts generating real profit.
Every cost in a small business falls into one of two buckets. Fixed costs stay the same whether you sell a lot or a little: shop rent, base salaries, internet, equipment depreciation. Variable costs rise with each unit you sell: the wholesale cost of goods, ingredients, packaging, delivery fees. The gap between your selling price and your variable cost per unit is the contribution margin — the slice of each sale that goes toward paying down fixed costs and, eventually, toward profit.
Take an illustrative small shop: fixed costs of 200.000.000 VND/month, a selling price of 150.000 VND/unit, and 90.000 VND of variable cost per unit. The contribution margin is 60.000 VND per unit, a 40% margin ratio on price. To break even you need to sell 3.334 units/month (about 112 units/day), which is 500.100.000 VND of revenue. These figures are an illustrative example only — enter your own shop's numbers in the calculator above to get a result that fits your business.
How the calculator finds your break-even point
The three core formulas
Contribution margin/unit = Selling price − Variable cost/unit
Break-even units = Fixed costs ÷ Contribution margin/unit
Break-even revenue = Break-even units × Selling price
| Term | Meaning |
|---|---|
| Fixed costs | Monthly costs that do not move with sales (rent, base pay, internet) |
| Selling price | The price of one unit |
| Variable cost | Cost that rises per unit sold (cost of goods, materials, shipping) |
| Contribution margin | Price − variable cost; the part that pays fixed costs |
| Margin ratio | Contribution margin ÷ price (this example = 40%) |
The calculator rounds the break-even unit count up, because you cannot sell a fraction of a unit: if 200.000.000 ÷ 60.000 does not divide evenly, you only truly clear your losses after selling the next whole unit.
Why the margin ratio matters more than a high price
A 40% margin ratio means that of every 100 VND of revenue, 40 VND goes toward fixed costs and profit while 60 VND replaces the variable cost. Two shops with identical revenue but different margin ratios have completely different break-even points. This is why operators push high-margin lines (made-to-order drinks) over high-revenue, thin-margin ones (resold bottled goods).
Operating leverage: how fixed costs and price shift break-even
- Higher fixed costs push break-even up. If rent and payroll rise from 200.000.000 to 260.000.000 VND/month, break-even jumps from 3.334 to 4.334 units — you must sell 1.000 more units just to stay at zero profit.
- A price increase pulls break-even down. Raising the price by just 10.000 VND (from 150.000 to 160.000) drops break-even to 2.858 units — 476 fewer per month, as long as customers do not walk away over price.
What the model leaves out
It assumes price, variable cost and fixed costs are constant for the period and that every unit sells at the same price. In reality you may discount for volume, carry many products with different margins, or face step-changes in fixed costs (hiring another person when busy). Treat break-even as a decision benchmark, not an exact figure. Once you clear it, use FiMo's profit margin calculator to see how much of each remaining revenue dong is actually profit.
Worked example: a small shop with 200.000.000 VND/month of fixed costs
Illustrative assumptions: a selling price of 150.000 VND/unit and 90.000 VND of variable cost per unit, so the contribution margin is 60.000 VND/unit (a 40% ratio). Break-even = 200.000.000 ÷ 60.000 = 3.334 units/month, or 500.100.000 VND of revenue.
The table shows profit at three volumes: below, exactly at, and above the break-even point.
| Units/month | Revenue | Total contribution margin | Fixed costs | Profit |
|---|---|---|---|---|
| 2.000 (below break-even) | 300.000.000 | 120.000.000 | 200.000.000 | -80.000.000 |
| 3.334 (at break-even) | 500.100.000 | 200.040.000 | 200.000.000 | 40.000 |
| 4.500 (above break-even) | 675.000.000 | 270.000.000 | 200.000.000 | 70.000.000 |
Reading the table row by row:
- Selling 2.000 units still loses 80.000.000 VND — the 120.000.000 VND of contribution margin is not enough to cover the 200.000.000 VND of fixed costs.
- Selling exactly 3.334 units lands profit at roughly zero: this is the break-even point (the small residual comes from rounding units up).
- Selling 4.500 units delivers 70.000.000 VND of profit. Every unit beyond break-even drops its full 60.000 VND of margin straight to the bottom line, because fixed costs are already paid — which is why profit climbs so fast once you pass the break-even point.
A practical tip: divide the 3.334 units/month break-even by your open days to get a daily target (about 112 units/day over a 30-day month). A per-day number is far easier to track than a per-month one, and it tells you immediately whether today landed above or below break-even.
Frequently asked questions
What is the break-even point?
The break-even point is the sales volume (or revenue) at which profit is zero — total contribution margin exactly covers fixed costs. Below it you lose money; above it you start making real profit. With the illustrative example of 200.000.000 VND/month in fixed costs and 60.000 VND of margin per unit, break-even is 3.334 units/month (500.100.000 VND of revenue).
What is the break-even formula?
Break-even units = Fixed costs ÷ Contribution margin per unit, where contribution margin = price − variable cost per unit. Verifiable example: margin = 150.000 − 90.000 = 60.000 VND; break-even = 200.000.000 ÷ 60.000 = 3.334 units. Multiply by price for break-even revenue of 500.100.000 VND. The calculator rounds up because you cannot sell a fraction of a unit.
What is the difference between fixed and variable costs?
Fixed costs do not change with sales: shop rent, base salaries, internet, depreciation. Variable costs rise with each unit sold: cost of goods, materials, packaging, delivery fees. Classifying them correctly matters because only variable cost is subtracted from price to get the contribution margin; misfiling rent as a variable cost would make your break-even point completely wrong.
What is contribution margin and the margin ratio?
Contribution margin per unit = price − variable cost per unit, the amount each sale contributes toward fixed costs and profit. Example: 150.000 − 90.000 = 60.000 VND/unit, a 40% margin ratio on price. The higher the contribution margin, the faster you reach break-even — so favour high-margin products over chasing raw revenue.
How many units do I need to sell per day to break even?
Divide the monthly break-even by your number of open days. With the example of 3.334 units/month over a 30-day month, that is about 112 units/day. A daily target is far easier to track and tells you immediately whether today was above or below break-even. If you open fewer days (closed on Sundays, say), the per-day number rises — enter your actual open days.
Does raising prices or cutting costs lower break-even faster?
Both work, in different ways. Cutting fixed costs (say from 260.000.000 back to 200.000.000 VND) pulls break-even from 4.334 down to 3.334 units. Raising the price by 10.000 VND thickens the margin and lowers break-even to 2.858 units. Price increases usually have the strongest effect but risk losing customers — test both scenarios in the calculator before deciding.
Are the numbers in the example real market figures?
No. The 200.000.000 VND fixed cost, 150.000 VND price and 90.000 VND variable cost are an illustrative example chosen to make the formula easy to follow and verify. Rent, cost of goods and selling prices vary by industry, location and date. Enter your own shop's figures in the calculator — the formulas behave correctly at any inputs.