Break-Even Point Revenue Formula

Break-Even Point Revenue Formula – 2024 Guide & Calculator

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

  1. Sum all fixed costs (rent, salaries, depreciation, etc.).
  2. Determine total variable costs per dollar of sales.
  3. Calculate contribution margin ratio.
  4. 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: $

Download the Revenue Template

Excel (.xlsx)

Ready-to-use workbook with formulas and charts.

Download Excel

Google Sheets

Copy to your Drive and edit online.

Open Google Sheets

Leave a Comment