Tool breakage occurs randomly during machining operations, which induces more severe impacts on the quality of components compared to progressive tool wear. It is widely acknowledged that the unpredictable changes in cutting conditions will cause fluctuations in the signal amplitude and thus generate false alarms. This study introduced a novel method for tool breakage monitoring based on dimensionless indicators under time-varying cutting conditions. The amplitude ratio (AR) and the energy ratio (ER) were proposed according to the power spectrum of the spindle vibration signal, which represents the change of amplitude and the energy distribution, respectively. The AR and ER are normalized and integrated into a unified indicator for real-time breakage monitoring. The floating monitoring threshold is designed based on the Gaussian distribution. Moreover, the material removal rate (MRR) is selected as a secondary indicator to accurately identify tool breakage based on determining the amplitude fluctuation caused by cutting conditions or teeth breakage. The effectiveness of the proposed method for tool breakage monitoring has been verified under the constant, time-varying, and entry/exit cutting conditions. The results show that the proposed indicators have higher sensitivity than the traditional root mean square (RMS) features and eliminate false alarms during condition change transients. This research provides a potential solution for tool breakage monitoring under complex cutting conditions.