Financial Break Even Point Calculator

Break even finance refers to the point where the company makes no profit or loss. It is a point where the total sales equal total costs (i.e) the revenue received equals the total cost. The term has been widely used in Finance. It is the basic analysis used in calculating the margin of safety. In this financial break even point calculator, enter the fixed costs, operating cash flow, price per unit and variable cost per unit to calculate the break even point.

Break even finance refers to the point where the company makes no profit or loss. It is a point where the total sales equal total costs (i.e) the revenue received equals the total cost. The term has been widely used in Finance. It is the basic analysis used in calculating the margin of safety. In this financial break even point calculator, enter the fixed costs, operating cash flow, price per unit and variable cost per unit to calculate the break even point.

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Formula:

Financial Break Event Point = (C + O) / (P - V) Where, C = Fixed Costs O = Operating Cash Flow P = Price Per Unit V = Variable Cost Per Unit

Example:

Calculate financial break event point having a fixed costs of $12, operating cash flow of $19, price per unit of $24 and variable cost per unit of $12.

Solution:

Break Even Finance = (12 + 19) / (24 - 12)
= 2.5833


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