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Break-Even Point Solution

STEP 0: Pre-Calculation Summary
Formula Used
break_even_point = Fixed Costs/Contribution Margin per Unit
BEP = FC/CM
This formula uses 2 Variables
Variables Used
Fixed Costs- Fixed costs are the cost that does not change with an increase or decrease in the number of goods or services produced or sold.
Contribution Margin per Unit- The contribution margin per unit represents the incremental money generated for each product/unit sold after deducting the variable portion of the firm's costs.
STEP 1: Convert Input(s) to Base Unit
Fixed Costs: 2000 --> No Conversion Required
Contribution Margin per Unit: 20 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
BEP = FC/CM --> 2000/20
Evaluating ... ...
BEP = 100
STEP 3: Convert Result to Output's Unit
100 --> No Conversion Required
FINAL ANSWER
100 <-- Break Even Point
(Calculation completed in 00.000 seconds)
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6 Other formulas that you can solve using the same Inputs

Selling Price
selling_price = (Fixed Costs+Variable Cost per Unit*Volume of output)/Volume of output Go
Volume of Output
volume_of_output = Fixed Costs/(Selling Price-Variable Cost per Unit) Go
Total Revenue
total_revenue = Profit+(Fixed Costs+Total variable cost) Go
Profit
profit = Total revenue-(Fixed Costs+Total variable cost) Go
Total Variable Cost
total_variable_cost = Total cost-Fixed Costs Go
Total Cost
total_cost = Fixed Costs+Total variable cost Go

Break-Even Point Formula

break_even_point = Fixed Costs/Contribution Margin per Unit
BEP = FC/CM

How to Calculate Break-Even Point?

Break-Even Point calculator uses break_even_point = Fixed Costs/Contribution Margin per Unit to calculate the Break Even Point, Break-even point (or break even) is the point of balance making neither a profit nor a loss. Break Even Point and is denoted by BEP symbol.

How to calculate Break-Even Point using this online calculator? To use this online calculator for Break-Even Point, enter Fixed Costs (FC) and Contribution Margin per Unit (CM) and hit the calculate button. Here is how the Break-Even Point calculation can be explained with given input values -> 100 = 2000/20.

FAQ

What is Break-Even Point?
Break-even point (or break even) is the point of balance making neither a profit nor a loss and is represented as BEP = FC/CM or break_even_point = Fixed Costs/Contribution Margin per Unit. Fixed costs are the cost that does not change with an increase or decrease in the number of goods or services produced or sold and The contribution margin per unit represents the incremental money generated for each product/unit sold after deducting the variable portion of the firm's costs.
How to calculate Break-Even Point?
Break-even point (or break even) is the point of balance making neither a profit nor a loss is calculated using break_even_point = Fixed Costs/Contribution Margin per Unit. To calculate Break-Even Point, you need Fixed Costs (FC) and Contribution Margin per Unit (CM). With our tool, you need to enter the respective value for Fixed Costs and Contribution Margin per Unit and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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