1. Money
You can opt-out at any time. Please refer to our privacy policy for contact information.

Break-Even Point



The point in business where the sales equal the expenses. There is no profit and no loss.

Break-Even Point ($) = Fixed Costs ÷ Gross Margin Percentage

Also Known As: Breakeven Analysis
Our retail store buys widgets for $15 each, marks them up and sells them for $30. Our monthly expenses (fixed costs) are $10,000. This means our breakeven point would be $20,000 or 667 units.

$10,000 ÷ (15/30) = $20,000

$20,000 ÷ $30 = 667

©2014 About.com. All rights reserved.