Break-Even Analysis

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The Break-Even calculator computes the number of units needed to be sold in order to break even based on the the total fixed cost, the cost per unit and the sale price per unit.

INSTRUCTIONS: Choose units and enter the following:

(FC) This is the total fixed costs.
(RPU) This is the Revenue per Unit
(CPU) This is the Cost per Unit

Break-Even (BE): The calculator returns the number of units that must be sold to break even.

The Math / Science

The Break-Even Analysis equation shows the point in business where the sales equal the expenses. It is expressed in the number of units sold. The formula for Break-Even Analysis is:

BEA = FC / (RPU - CPU)

where:

BEA = Break-Even number of units
FC = Total Fixed Cost
RPU = Revenue per Unit
CPU = Cost per Unit

Example:

A store purchases hats for $15 each and sells them for $30 each. The store's monthly fixed cost amounts to $10,000, which means the breakeven point would be around 20,000 or 667 units.

$10,000 ÷ (15/30) = $20,000

$20,000 ÷ $30 = 667

Retail Calculator

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Break-Even Analysis equation shows the point in business where the sales equal the expenses.
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Maintained Markup reveals the impact of markdowns (reductions) on the Initial Markup.
Maintained Markup Percentage is the percentage of net sales.
Markup is the difference between cost of a good or service and its selling price.
Net Sales is the sales revenue less sales returns and allowances and sales discounts.
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Total Stock Return is the appreciation in the price plus any dividends paid, divided by the original price of the stock.

Resource:

Waters, Shari. "Retail Sales Math Formulas and Equations." About.com. About.com, n.d. Web. 14 July 2015. <http://retail.about.com/od/retailingmath/a/retail_formulas.htm>.