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Guide: Break-Even Point

What it does

Solves for quantity where total revenue equals total cost.

How to use it

Enter fixed costs, selling price, and variable cost per unit.

Formula

Break-even units = Fixed ÷ (Price – Variable cost per unit).

Example

Fixed $10,000, price $50, variable $20 → break-even at 333.33 units.

FAQs

What if contribution margin is negative?

You never break even at any volume—reduce costs or raise price.

Semi-variable costs?

Split costs into fixed vs variable per unit for a cleaner model.

Break-even revenue vs units?

Multiply units by price for revenue break-even.

Perkss EPOS and Online Ordering solutions are your recipe for success. Our EPOS streamlines transactions and inventory management, while Online Ordering expands your reach and boosts revenue. Together, they ensure efficiency and profitability for your business.

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