How to Calculate the Break-Even Point of Your Ecommerce
break even point The break-even point does not change when sales change It remains the point at which revenue covers variable and fixed costs without any profit Break-even Point In Sales Dollars One can determine the break-even point in sales dollars by dividing the company's total fixed expenses by
To calculate the break-even point in units use the formula: Break-Even point = Fixed Costs ÷ (Sales price per unit Example: Joe's Tyres · Break-even for Joe's Tyres: $15,600 ÷ (1 − ) = $39,000 · Break-even for Joe's
To calculate the break-even point on an investment, add all the costs associated with the investment and subtract that from any income received So if the total Break-Even Point: Definition, Variables and Examples · The break-even point is the time at which a business doesn't generate a profit or