The Break Even Calculator uses the following formulas: Q = F / (P − V) , or Break Even Point (Q) = Fixed Cost / (Unit Price − Variable Unit Cost) Where: Q is the break even quantity, F is the total fixed costs, P is the selling price per unit, ...
Once you know these three numbers, you are ready to perform your break even calculation. Using the calculator above, plug in your numbers and see how many units (ie. products) you have to sell in a typical month to cover your costs. The calculator will also tell you the total revenue y...
Selling Price per Unit:Break-even units:0.00 Fixed Cost:Total Revenue:$ 0.00 Variable Cost per Unit:Total Cost:$ 0.00 Change variablesProfit:$ 0.00 Note: This calculator is a JavaScript program. You must have JavaScript enabled in order to use it. ...
Alternatively, the break-even point can also be calculated by dividing the fixed costs by the contribution margin. The total fixed costs are $50k, and the contribution margin ($) is the difference between the selling price per unit and the variable cost per unit. So, after deducting $10.00...
Example: If you are selling software online, the payment processing service might charge $1 plus 7.5% of the sale price. If the sale price was $14.00, then the Variable Cost per unit (V) would be 1+(0.075*P) = $2.05. In the break-even calculator, you can split the cost between th...
Formula to calculate Break Even Point is as below: Break Even Point = Total Fixed Costs / (Selling Price per Unit – Variable Cost per Unit) Break Even Point = $100,000 / ($1.20 – $0.80) Break Even Point = $250,000 Therefore, the company needs to sell at least 250,000 widgets ...
Break-even Point = Fixed Costs ÷ (Selling Price per Unit - Variable Cost per Unit) Fixed Costs:Expenses that don’t change based on volume of production or sales, including rent, equipment, utilities, salaries, and insurance Variable Costs:Costs that vary depending on sales volume and the ...
Formula: break-even point = fixed cost / (average selling price - variable costs) Before we calculate the break-even point, let’s discuss how the break-even analysis formula works. Understanding the framework of the following formula will help determine profitability and future earnings potential...
Break-Even Point (Units) = Fixed Costs ÷ (Revenue per Unit – Variable Cost per Unit) Fixed costs are those that do not change no matter how many units are sold. Don't worry, we will explain with examples below. Revenue is the income, or dollars made by selling one unit. ...
If you're using our break even template, fill out your business fixed costs in the currency you're charged into the table marked Step 1, just like below. What is a variable cost? Variable costs are the individual costs that go into making or selling one unit of your stock, which...