Break-Even Point Calculator

Calculate Break-Even Point





Formula

The formula to calculate the Break-Even Point is:

\[ \text{BP} = \frac{\text{TFC}}{\text{RPU} - \text{CPU}} \]

Where:

What is a Break-Even Point?

A break-even point is defined as the exact quantity or monetary value at which a certain business or product becomes profitable. That is, the revenue outweighs the costs.

Example Calculation

Let's assume the following values:

Using the formula:

\[ \text{BP} = \frac{1000}{50 - 30} = 50 \, \text{units} \]

The Break-Even Point (BP) is 50 units.