Financial Break Even Point Formula

Here provided the financial break even point formula to find the break even finance. Formula is defined as (C + O) / (P - V), where C = Fixed Costs, O = Operating Cash Flow, P = Price Per Unit, V = Variable Cost Per Unit. Add the fixed costs and operating cash flow, then subtract the variable cost per unit from the total price per unit. Finally, divide the obtained result by the second result obtained. The final value gives you the break even finance.


Financial Break Event Point = (C + O) / (P - V)


C = Fixed Costs
O = Operating Cash Flow
P = Price Per Unit
V = Variable Cost Per Unit

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Financially the method of finding the break even point is called as value added break-even analysis. It helps to plan and develop the levels of production, that in turn to develop the profitability of the business.

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