05 / 15 · GLOSSARY
05 / 15Dificultad

Break-Even Point

The minimum number of units (or sales) needed to cover all costs. Above that point, you start earning.

↳ Analogía

If you sell 100 units and BEP is 80, you have a cushion of 20 units before going into loss.

Ejemplo numérico

If your sales forecast sits comfortably above the BEP, the business is robust. If it's near or below, rethink price or cost structure. Fixed costs: $10,000/month. Price − Variable cost per unit: $50. → BEP = 200 units/month. Below 200 units, you lose money.

Fórmula
BEP = Fixed Costs / (Price − Variable Cost per Unit)
↳ Ver tambiénSafety MarginCash Flow
Break-even point: the formula every entrepreneur must know→

When to use it

When you want to know the minimum sales volume to avoid losing money. It's the first number you need to know before opening the doors.

Run your own case

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Definitions aligned with Blank & Tarquin, Engineering Economy, 8th edition — McGraw-Hill.