Break Even Point Calculator
This converter requires the use of Javascript enabled and capable browsers. This script calculates the break even point each month in a sales business. Determine as best possible the fixed overhead cost of the business. Determine the retail price and cost of the "bread and butter" item you sell. Our example is a small retail phone sales store, selling SmartPhones. The average month has an overhead cost of $10,000.00; the phones cost the owner $200.00 each and he sells them for $300.00 each. The formula is BreakEvenPoint = FixedCosts / GrossMarginPercentage. In our example scenario, the $10,000.00 / (200.00/300.00) = $15,000.00. 15000 / 300 = 50 units to break even. Our verification is 50 units x 300.00 sales price = 15000,00 BEP.
Enter the overhead expenses, sales price and cost figures from your sales information. Click the Calculate button; read the montly cost (including inventory cost) and the break even point. The verification should be equal to the montly cost. You may click on Clear Values and do another. You MAY enter a decimals for entries in all fields but do not enter any commas or dollar signs (, or $).
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