Break Even Point Formula

How to Calculate Break Even Point

A business is said to break even when it’s profit is zero. It is useful to be able to calculate the sales needed for a business to break even, and to do this the Break Even Point Formula is used.

The Break Even Point Formula

Break Even Point = Fixed Costs / Gross Margin Percentage

For further information on the Break Even Point Formula see the Wikipedia definition.

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Last modified March 23rd, 2016 by Team

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