A break-even point is the sales point at which a company begins to earn a profit. It is found using the following formula:
Break-even point = Fixed costs / (Sales price per unit – Variable cost per unit)
To find how many units a company needs to sell in order to break even and start earning a profit, simply fill in the values below and then click the “Calculate” button.
Break-even point (units): $750.00
Break-even point (sales): $22,500.00