Break-even point

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The basics of pricing should lead you to set up a price which in line with your costs would allow you to make a profit. Unit fixed costs decrease with your sales, while unit variable costs are constant with sales; so then, as sales increase turnover allows for covering the variable costs (whenever selling price exceeds the unit variable cost) and part of the fixed costs. The break-even point is the level of sales when turnover will just cover both costs, leading the company to abandon loses.

The break-even point is the level of sales which is a minimum for the company to start making a profit. To obtain this in terms of units and currency, input the figures for your fixed costs, the variable cost and the unit price in our free break-even calculator for Android devices.


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