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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 provides a commission-free hospitality EPOS with ordering, table bookings, branded apps, full customer data ownership, 24/7 support, and no long-term contracts.

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