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The point where total revenue equals total costs, resulting in zero profit or loss.
The break-even point (BEP) is the production or sales level at which total revenue equals total costs (both fixed and variable). BEP = Fixed Costs / (Selling Price Per Unit - Variable Cost Per Unit). Below BEP, the business operates at a loss; above BEP, it generates profit. Break-even analysis helps businesses determine minimum sales targets, pricing strategies, and the viability of new products. It is a fundamental tool in cost accounting and business planning.
BEP = Fixed Costs / (Price - Variable Cost per Unit)Calculate your profit margin, gross profit, and markup percentage. Free business profit calculator with revenue and cost inputs.
Calculate your break-even point in units and revenue. Free business calculator for fixed costs, variable costs, and pricing analysis.