The term break even point helps you to calculate the range or selling cost that will give you no profit or no loss. That means the cost is the total rate which you or a business manufacturer have spent on the production of a product.
The calculator has all the digits that you would need & a calculation button that directly shows the result; it won’t need too many steps.
What are the Uses of Break Even Point Formula Calculator?
Let’s see the uses of the break-even point formula calculator:
- The calculator will help you to set costs for every product; it determines the total budget you have spent & how much should you add for your profit.
- If you want to release products at a zero profit for promotional purposes, you will need the calculator.
Break-Even Point Formula Managerial Accounting in Sales:
You can measure break even point in 2 ways.
- Based on Units
- Based on Sales Price
Here is the formula for how to calculate break even point based on the sales price. Our calculator work based on this formula.
Break-Even Points = FC ÷ (SP – VC)
Where:
- FC= Fixed Cost
- SP= Selling Price
- VC= Variable cost per price
Break Even Point Example:
If you want to see the manual process of how our calculator works or if you want to calculate it manually then see the below example it can help you to understand the formula and process.
Supposed:
- FC= 30000
- SP= 30
- VC= 20
BEP= 30000 ÷ (30-20)
= 30000 ÷ 10
= 3000
How To Calculate The Break-Even Point In Excel:
If you want to calcuate the break even point using Excel then follow the below process how I calculated it on Excel.
At first design your sheet like the below table.
| A | B | |
| 1 | Fixed cost (FC): | |
| 2 | Variable cost per Unit (VC): | |
| 3 | Selling Price (SP): | |
| 4 | Breakeven Unit: | =B1 / (B3-B2) |
After input your fc, vc and sp then type the formula on B4 cell =B1 / (B3-B2)
You can also see the below screenshot that can help you to understand.
