Break Even Revenue Calculator

Formula

The formula to calculate Break Even Revenue is:

\[ \text{BER} = \frac{\text{OE}}{\text{GM}/100} \]

Where:

$\text{BER}$ is the Break Even Revenue ($)
$\text{OE}$ is the operating expenses ($)
$\text{GM}$ is the gross margin (%)

What is Break Even Revenue?

Break Even Revenue is the amount of revenue needed to cover all operating expenses. It is a crucial metric for businesses to understand their financial health and to determine the minimum sales required to avoid losses.

Example Calculation 1

Let's assume the following values:

Operating Expenses (OE) = $50,000
Gross Margin (GM) = 25%

Using the formula:

\[ \text{BER} = \frac{50000}{25/100} = 200000 \]

The Break Even Revenue is $200,000.

Example Calculation 2

Let's assume the following values:

Operating Expenses (OE) = $75,000
Gross Margin (GM) = 30%

Using the formula:

\[ \text{BER} = \frac{75000}{30/100} = 250000 \]

The Break Even Revenue is $250,000.