Break even calculator

Break-even refers to the point at which a business or project neither makes a profit nor incurs a loss. At the break-even point, there is no net gain or loss, and all expenses are covered.

Ciaran Burke

Page written by AI. Reviewed by Ciaran Burke on January 4, 2024.

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This calculator is intended for illustration purposes only and exact payment terms should be agreed with a lender before taking out a loan.

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How to calculate break even point

To calculate the break-even point, you’ll need the following information:

  1. Fixed Costs (FC): These are costs that do not change with the level of production or sales. This may include rent, salaries, insurance, etc.
  2. Variable Costs per Unit (VC): These are costs that vary with the level of production or sales, such as raw materials or production costs.
  3. Selling Price per Unit (SP): The price at which you sell each unit of your product or service.

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