Break Even Sales Calculator

Calculate Break Even Sales





Formula

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

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

Where:

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:

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:

Using the formula:

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

The Break Even Sales is 500 units.