Break Even Point Formula

How to Calculate Break Even Point

A business is said to break even when it’s profit is zero. It is useful to be able to calculate the sales needed for a business to break even, and to do this the Break Even Point Formula is used.

The Break Even Point Formula

Break Even Point = Fixed Costs / Gross Margin Percentage

For further information on the Break Even Point Formula

Learn a new bookkeeping term

Random bookkeeping terms for you to discover.

Link to this page

Click in the box and paste the link to your site.

Return to the Glossary

Break Even Point Formula March 23rd, 2016Team

You May Also Like

Related pages

royalty payments accountingbookkeeping in exceloperating leverage ratio formulaproveit test sampleformula for arrcarriage inwarddebtors formulaproforma of bank reconciliation statementaccounts receivable dsois indirect labor a period costallowances for doubtful accountsfinancial accounting debits and creditshow to calculate manufacturing overheadinventory sale journal entrypetty cash template xlsformat of debtors control accountcash conversion calculatorcalculating payback periodwhat is perpetual annuitystraight line depblank ledger templatedepreciation reducing balanceunearned revenue what type of accountassets employed formulawhat is manufacturing overheadstandard costing variance formulastreatment of suspense account in balance sheetdepreciation journal entry examplecommon size balance sheet exampleclosing entries are dated in the journal as ofdupont analysis ratiosexamples of debits and credits in accountingaccounting for consignmentshareholders equity calculatorfind contribution marginreceivables turnover ratio examplepv of a perpetuity formulaopposite of prepaid expensecalculate discount rate in excelcommon stock distributableallocating manufacturing overheaddeferred taxes definitionoverhead cost varianceexcel payment formulamoney depreciation calculatorbond amortization scheduledepreciation slmexpenses are debits or creditstrial balance spreadsheetinsurance accounting basicscorrecting journal entries examplesreceivable turnover daysbasic accounting spreadsheetpv annuity calculatoramortisation of bondscapital receipts examplesthe accounting cycle 10 stepswhat is a contra account in accountinghow to calculate pmtworksheet examples accountingtemporary accounts accountinghow to calculate the markup percentagemargin markup calculatortimes interest coverage ratiowhat does freight collect meanfactory overhead volume variancewhat is the difference between adjusting entries and correcting entriescash receipt book templateprepaid insurance definitionaccounting period costsnet gearing ratiospreadsheet accounts templateopposite of deferred revenuehow to calculate retained profit