Break Even Sales Calculator

Formula

To calculate the Break Even Sales ($BES$):

\[ BES = \frac{FC}{SPU - VC} \]

Where:

$BES$ is the Break Even Sales
$FC$ is the fixed costs ($)
$SPU$ is the sales per unit ($)
$VC$ is the variable cost per unit ($)

What is Break Even Sales?

Break Even Sales is the point at which total revenue equals total costs, meaning there is no profit or loss. It is calculated by dividing the fixed costs by the difference between the sales per unit and the variable cost per unit.

Example Calculation 1

Let's assume the following values:

Fixed Costs ($FC$) = $10,000
Sales Per Unit ($SPU$) = $50
Variable Cost Per Unit ($VC$) = $30

Using the formula:

\[ BES = \frac{10,000}{50 - 30} = 500 \]

The Break Even Sales is 500 units.

Example Calculation 2

Let's assume the following values:

Fixed Costs ($FC$) = $5,000
Sales Per Unit ($SPU$) = $25
Variable Cost Per Unit ($VC$) = $15

Using the formula:

\[ BES = \frac{5,000}{25 - 15} = 500 \]

The Break Even Sales is 500 units.