Break-Even Point Revenue Formula
Exact equations, examples, and free tools to find the dollar break-even
Break-Even Revenue Formula
Method 1 – Using Contribution Margin %
Break-Even Revenue = Fixed Costs ÷ Contribution Margin %
Where Contribution Margin % = (Revenue − Variable Costs) ÷ Revenue × 100
Method 2 – Using Contribution per Unit
Break-Even Revenue = Break-Even Units × Selling Price
Method 3 – Using Variable Cost Ratio
Break-Even Revenue = Fixed Costs ÷ (1 − Variable Cost Ratio)
Where Variable Cost Ratio = Variable Costs ÷ Revenue
Step-by-Step Calculation
- Sum all fixed costs (rent, salaries, depreciation, etc.).
- Determine total variable costs per dollar of sales.
- Calculate contribution margin ratio.
- Divide fixed costs by the ratio to get break-even revenue.
Real-World Examples
Online Store
Fixed Costs: $25,000
Gross Margin %: 40 %
Break-Even Revenue = 25,000 ÷ 0.40 = $62,500
SaaS Subscription
Fixed Costs: $10,000/month
Contribution Margin %: 60 %
Monthly Break-Even MRR = 10,000 ÷ 0.60 = $16,667
Manufacturing
Fixed Costs: $100,000
Variable Cost Ratio: 55 %
Break-Even Revenue = 100,000 ÷ (1 − 0.55) ≈ $222,222
Instant Break-Even Revenue Calculator
Break-Even Revenue: $—