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Break-Even Point — The Calculation That Saves Your Business
What Is the Break-Even Point?
The quantity or revenue where income exactly equals total costs — zero profit, zero loss. Above it: profit. Below it: loss.
Formula: BEP = Fixed Costs / (Selling Price - Variable Cost per Unit)
Practical Example
- Monthly rent and operations: 10,000
- Selling price: 50 per unit
- Production cost: 30 per unit
- BEP = 10,000 / (50-30) = 500 units per month
Meaning: before selling 500 units monthly everything you earn covers costs only. Profit starts from unit 501.
Why 67% Don t Calculate It?
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