#SALES PRICE PER UNIT CALCULATOR HOW TO#

There are two common ways to calculate your break-even point-in units or sales dollars. If your revenue is higher than your costs, you’re making a profit. If your revenue is under your costs, you’re operating at a loss. When this happens, your business is neither losing nor gaining money. The break-even point is the point in which your company’s costs equal its revenue. You can also use it to estimate your profit based on current or projected sales. If you’re ready to calculate your BEP, check out the calculator below! Use it to calculate the volume of sales or price to sell your services to break even on a monthly, quarterly, or yearly basis.

#SALES PRICE PER UNIT CALCULATOR HOW TO#

It will also come in handy when presenting your business to potential investors or business partners.įor a step-by-step guide on how to calculate your break-even point (BEP), keep reading. Part of that planning will consist of knowing the amount of business you need to avoid being in the red and cover your overhead costs.Įven if you’ve been running your business for a few years, knowing when you’ll break even at various sales volumes for different products or services can help you better prepare for unprecedented situations like a pandemic or natural disaster.

When starting a business, it’s recommended to plan for 12 to 15 months of cash flow to keep your business afloat as it gains traction.

Sales price per unit calculator