Break-Even Point | Break-Even Analysis | Calculator

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padding-right: 10px; } .free-tool-navbar .close-btn { display: block; } .free-tool-navbar.open + .nav-bar-con { max-width: 100%; } } @media screen and (max-width: 768px) { .free-tool-navbar.open { top: 50px; } } @media screen and (max-width: 500px) { .free-tool-navbar.open { top: 47px; } } </style> <div class="free-tool-navbar"> <span class="close-btn" onclick="toggleNavBar();"> <svg width="12.486" height="12.485"><path data-name="Union 1" d="M10.45 12.137l-4.208-4.21-4.21 4.21a1.19 1.19 0 01-1.683-1.684l4.209-4.21L.349 2.032A1.19 1.19 0 012.032.348l4.21 4.211L10.453.348a1.19 1.19 0 011.684 1.684L7.926 6.244l4.207 4.209a1.19 1.19 0 11-1.683 1.684z" fill="#797979"/></svg> </span> <div class="heading"> <img src="/inventory/images/zoho-logo-darkbg.png" width="100"> <h5>Finance Free Apps</h5> </div> <ul> <li class="nav-sub-header"> <div class="nav-product-logo"> <img src="/inventory/images/inventory-icon-white.svg" alt="zoho inventory"/><span>Inventory</span> </div> <ul class="sub-tools"> <li > <a href="https://www.zoho.com/inventory/sku-generator/" rel="noopener noreferrer"> SKU Generator </a> </li> <li > <a href="https://www.zoho.com/inventory/purchaseorder-generator/" rel="noopener noreferrer"> Purchase Order Generator </a> </li> <li > <a href="https://www.zoho.com/inventory/reorder-point-calculator/" rel="noopener noreferrer"> Calculate Reorder Point </a> </li> <li > <a href="https://www.zoho.com/inventory/economic-order-quantity/" rel="noopener noreferrer"> Economic Order Quantity </a> </li> <li class="active" > <a href="https://www.zoho.com/inventory/break-even-point-calculator/" rel="noopener noreferrer"> Break-even Point Calculator </a> </li> <li > <a href="https://www.zoho.com/inventory/inventory-turnover-ratio/" rel="noopener noreferrer"> Inventory Turnover Ratio </a> </li> <li > <a href="https://www.zoho.com/inventory/packing-slip-generator/" rel="noopener noreferrer"> Packing Slip Generator </a> </li> <li > <a 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href="https://www.zoho.com/billing/free-revenue-forecast/" rel="noopener noreferrer"> Revenue Forecaster </a> </li> </ul> </li> <li class="nav-sub-header"> <div class="nav-product-logo"> <img src="/inventory/payroll-logo.svg" alt="zoho payroll" /><span>Finance & Payroll</span> </div> <ul class="sub-tools"> <li> <a href="https://www.zoho.com/uk/books/free-tools/furlough-claim-calculator/" rel="noopener noreferrer"> HMRC Furlough Claim Calculator </a> </li> <li> <a href="https://www.zoho.com/in/payroll/income-tax-calculator/" rel="noopener noreferrer"> Income Tax Calculator </a> </li> <li> <a href="https://www.zoho.com/us/books/paycheck-calculator/" rel="noopener noreferrer"> Paycheck Calculator </a> </li> <li> <a href="https://www.zoho.com/in/books/free-gst-calculator/" rel="noopener noreferrer"> India GST Calculator </a> </li> <li> <a href="https://www.zoho.com/uk/books/free-tools/vat-calculator/" rel="noopener noreferrer"> UK VAT Calculator </a> </li> <li> <a 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0-13.8 8.1-13.8 17.3 0 8.7 4.7 16.7 14.3 16.7 9.9-.1 13.8-8.6 13.8-17.1z"></path></svg> <span class="title-divider"></span> <div class="title"> <h1 class="tool-name">Break-even Point Calculator </h1> <a href="/inventory/?utm_source=bep_calculator&utm_medium=backlink&utm_campaign=free_tools" rel="noopener noreferrer" class="powered-by"> by Zoho Inventory </a> </div> </div> <div class="d-flex align-items-center"> <a class="check-zoho-inventory" href="/inventory/?utm_source=bep_calculator&utm_medium=backlink&utm_campaign=free_tools"> Check out Zoho Inventory </a> <div class="signupnow-buttons cta-btn"> <a id="banner-signup-button" href="/inventory/signup/?utm_source=bep_calculator&utm_medium=backlink&utm_campaign=free_tools"> Sign up, it's free! </a> </div> </div> </div> </div> <div class="zom-header"> <div class="header-wrapper"> <div class="feature-heading"> <h1><strong>Free <div style="color: #950537;display: inline-block;">break-even point calculator</div></strong></h1> <p class="subtext"> Finding your break-even point answers one of the most important questions for any business: when will it start making a profit? The break-even point calculates the number of units (or the amount of sales) that an organization needs to make for cost to equal income. </p> </div> </div> </div> <div class="main"> <div class="container"> <section class="feature-section"> <div class="feature-image bep-calc"> <div class="content"> <div class="bep-calculator"> <div class="bep-container" id="bep-container"> <div class="bep-header"> BEP Calculator </div> <div class="switch-field"> <input type="radio" id="unit_field" name="bep_type" value=true onclick="switchBEPType()" checked/> <label for="unit_field" class="unit-labels">Unit</label> <input type="radio" id="price_field" name="bep_type" value=false onclick="switchBEPType()" /> <label for="price_field" class="unit-labels">Price</label> </div> <div class="input-field-container"> <div class="input-field"> <h4>Fixed Cost</h4> <input id="fixed-price" type="text" autofocus> </div> <div class="input-field"> <h4 id="variable-cost-label">Variable Cost Per Unit</h4> <input id="variable-cost" type="text"> </div> <div class="input-field"> <h4 id="item-price-label">Price per Unit</h4> <input id="item-price" type="text"> </div> <div class="calc-btn"> <button id="calc-btn">Calculate</button> </div> </div> </div> <div class="result-container hidden" id="result-container"> <div class="bep-header"> BEP Calculator </div> <div class="result-content"> <div class="result-item">BEP Type : <div class="result-item-value" id="bep-type"></div></div> <div class="result-item">Fixed Cost : <div class="result-item-value" id="fixed-price-result"></div></div> <div class="result-item"><label id="variable-cost-resultlabel"></label><div class="result-item-value" id="variable-price-result"></div></div> <div class="result-item"><label id="item-price-resultlabel"></label><div class="result-item-value" id="item-price-result"></div></div> <div class="bep-result"> <label id="bep-result-label"></label> <div id="bep-result" class="bep-result-value"></div> </div> <div class="calc-btn"> <button id="recalc-btn">Recalculate</button> </div> </div> </div> </div> </div> </div> <div class="feature-content"> <div class="content"> <h2><strong>What is a break-even analysis?</strong></h2> <span class="popover-container"> <img class="popover-image" id="popover-trigger" src="/inventory/bep-calculator/images/help.svg"> <div class="popover-content hidden" id="popover-content"> <div class="arrow"></div> <div class="content"> <img id="popover-close" class="close-icon" src="/inventory/bep-calculator/images/remove.svg"> <div class="content-header">Formula for calculating break-even analysis</div> <div class="content-subheader">Unit</div> <div class="content-formula">Break-even point (units) = Fixed cost / (Price per unit - Variable cost per unit)</div> <div class="content-subheader">Price</div> <div class="content-formula">Break-even point (price) =Total Variable cost + Fixed cost / Number of units</div> </div> </div> </span> <p>Break-even analysis is the process of determining an organization's break-even point. It requires considering fixed cost, variable cost, price per unit, and number of units. Break-even analysis helps when:</p> <div class="example-section"> <div class="example-header">Unit:</div> <p>You want to identify the number of units you need to sell to reach the break-even point</p> <div class="example-content"><span class="example-content-bold">For example,</span> when you're launching a new range of items, you need to know what are the minimum number of units you need to sell to recover your fixed and variable cost. </div> </div> <div class="example-section"> <div class="example-header">Price:</div> <p>You know the number of items you need to sell, but want to decide on the right price for your product </p> <div class="example-content"><span class="example-content-bold">For example,</span> you've the target set for the number of units you want to sell by the quarter end, but finding it a little confusing to fix the right price for the item</div> </div> </div> </div> </section> <section class="feature-section expanded"> <div class="feature-content"> <div class="content"> <h2><strong>What is a fixed cost?</strong></h2> <p> Fixed costs are costs that are incurred by an organization for producing or selling an item and do not depend on the level of production or the number of units sold. Some common examples of fixed costs include rent, insurance premiums, and salaries. You can see that all of these costs do not change even if you increase production or make more sales in a particular month. </p> <div class="excel-download"> To learn more about fixed costs, <a class="excel-download-link" href="/inventory/bep-calculator/spreadsheet/Zoho_inventory_fixed_cost.xlsx" download> Download our Excel template </a> </div> </div> <div class="content variable-cost"> <h2><strong>What is a variable cost?</strong></h2> <p> Variable costs are the costs that are directly related to the level of production or number of units sold in the market. Variable costs are calculated on a per-unit basis, so if you produce or sell more units, the variable cost will increase. Some common examples of variable costs are commissions on sales, delivery charges, and temporary labor wages. </p> <div class="excel-download"> To learn more about variable costs, <a class="excel-download-link" href="/inventory/bep-calculator/spreadsheet/Zoho_inventory_variable_cost.xlsx" download> Download our Excel template </a> </div> <div></div> </div> </div> <div class="feature-image bep-analysis"> <img width="100%" src="/inventory/bep-calculator/images/break-even-analysis-1x.png" srcset="/inventory/bep-calculator/images/break-even-analysis-1x.png 1x, /inventory/bep-calculator/images/break-even-analysis-2x.png 2x" alt="Break even analysis - Zoho Inventory"/> </div> </section> <section class="feature-section"> <div class="metrics-header-content"> <h2>How can the break-even point help your business?</h2> <p class="metrics-subtext">The break-even point is a great metric and an important tool that helps your business in a lot of ways. Here are the top three benefits of the break-even point in running your business:</p> </div> <div class="metrics-section"> <div class="metrics-item"> <div class="image-section"> <img src="/inventory/bep-calculator/images/feasibility.svg" alt="Feasibility of break even analysis - Zoho Inventory"/> </div> <div class="content-section"> <h4>Feasibility</h4> <p class="metric-content">It's important to study the feasibility of any project or new product line that you're planning to launch. With break-even analysis, you can identify the time and price at which your business will turn profitable. This helps you plan the range of activities you need to reach that point, set up a turnaround time for your tasks, and stick to a timeline.</p> </div> </div> <div class="metrics-item"> <div class="image-section"> <img src="/inventory/bep-calculator/images/analysis.svg" alt="Analysis of fluctuation in business - Zoho Inventory"/> </div> <div class="content-section"> <h4>Analysis</h4> <p class="metric-content">Fluctuations in business are a common scenario. External circumstances, like trade agreements and changes in the political climate, have an impact on your sales. This may cause your variable or fixed costs to surge. In such cases, break-even analysis will help you to decide on new prices for your products. The break-even point gives you a clear picture of how much time will it take for your business to recover any losses and break even again after a change in the business forecast.</p> </div> </div> <div class="metrics-item"> <div class="image-section"> <img src="/inventory/bep-calculator/images/strategy.svg" alt="Strategy making for promoting business - Zoho Inventory"/> </div> <div class="content-section"> <h4>Strategy</h4> <p class="metric-content">Strategy making is an integral part of any organization. Whether you're trying to promote your brand-new product, stay ahead of your competitors, or cut down on your expenses, you need to have a strategy in place. Break-even analysis helps you to formulate these strategies. If you have a break-even point tool, you can try out changes to variables like the cost involved in the promotions or the rate of depreciation, and calculate how many units you need to sell to reach the break-even point. This helps you craft a more formidable strategy and reap better benefits for your company.</p> </div> </div> </div> </section> </div> </div> <div class="footer-cta-section"> <div class="footer-container"> <div class="footer-content"> <h4>Making it all even out</h4> <div class="content"> If you're an entrepreneur planning to launch your product in the market, or a project manager guiding the next big project, the break-even point is an essential statistic for measuring the viability of your work. The break-even point makes it easy to plan, analyze, and review the progress of your project or plan. However, not everyone wants to calculate their break-even point manually. This ready-to-use tool solves this problem and makes this important statistic quick and convenient. </div> </div> <div class="footer-contactus"> Do give it a try and let us know how you liked it by emailing us at: <div> <a class="emaillink" href="mailto:support@zohoinventory.com">support@zohoinventory.com</a> </div> </div> </div> </div> <style> .promotion-section { display: flex; flex-direction: column; padding: 80px 0 50px 0px; background-repeat: no-repeat; background-size: 100%; background-color: #fdeecf; text-align: center; } .zoho-inv-logo { width: 250px; height: 40px; } .btns { font-size: 16px; border-radius: 5px; text-align: center; text-decoration: none; cursor: pointer; display: inline-block; } .btn-mains { margin: 32px 0 40px; line-height: 16px; background-color: #f94049; color: #fff; padding: 15px 30px; font-family: "Zoho Puvi SemiBold", -apple-system, BlinkMacSystemFont, "San Francisco", "Helvetica Neue", Helvetica, Ubuntu, Roboto, Noto, "Segoe UI", Arial, sans-serif; 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