Breakeven point (units) = Fixed costs ÷ (Price − Unit variable cost)
The breakeven point is the sales volume at which revenue equals total costs and profit is zero. It is another name for break-even or profitability threshold: from that volume on, every unit sold leaves a margin.
How it is calculated
Breakeven point (in units) = Fixed costs ÷ (Unit selling price − Unit variable cost). Breakeven point (in revenue) = Fixed costs ÷ Contribution margin %. The denominator is the unit contribution margin: what each sale contributes to covering fixed costs.
Example with numbers
A company sells a service at 500 with a variable cost of 200 per unit and fixed costs of 90,000 a month. Unit margin: 300. Breakeven point: 90,000 ÷ 300 = 300 units, or 150,000 of revenue. Selling 350 units, profit is 50 × 300 = 15,000.
How Fibady does it
Fixed and variable costs are separated in the group P&L with unlimited levels and analytical accounts, and the budget by area shows in which month of the forecast the breakeven point is reached per entity and consolidated. Every figure opens down to the entry behind it.