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  • What is it for: Calculates the break-even point of a business or investment.

  • How it works: Identify when revenue exactly covers costs.

  • Calculation: Break-even = Fixed costs / (Unit selling price - Unit variable cost)

  • Usage: Essential for determining the minimum profitability of a project.

  • Formula: Break-even Point = Fixed Costs / (Price per unit - Variable Cost per unit)

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