Wouldn't it be great if there was a tool that would allow you to quickly and easily estimate and graph a company's break-even point? Look no further; at PM Calculators, we present you with our online version of a break-even calculator to obtain it quickly and online.
Break Even Point Calculator
Our free version of the online break-even calculator allows you to quickly obtain the break-even point for a single product, as well as the profit generated for a given level of sales. We have four types of online calculators with more functionalities for those who are part of the PM Calculators membership.
Advanced Functions of the Online Breakeven Calculator with Graphs
As students, having step-by-step support in the solution of problems is a great advantage. That is why in PM Calculators, we have designed our applications oriented not only to give you the result but also to teach you how to obtain it.
Among the functions that you can find, we have:
- Learn step by step how to graph the break-even point of a single product.
- Obtain the break-even point in units and money.
- Calculate the break-even point of different alternatives and compare them.
- Determine the profit lines.
- To plot the cost lines.
- Determine the multiproduct break-even point.
The four applications are:
- Break-even point (Single product). See example.
- Multiproduct Break-even Point. See example.
- Analysis of alternatives with the break-even point (Profit). See example.
- Cost analysis with the break-even point. See example.
How to use the break-even point calculator?
To use our break-even point calculators, you must do the following:
- Choose the application according to the type of problem to solve.
- Enter the data of the problem. For example, in the case of the break-even point of a single product, you would enter:
- Total Fixed Cost: This value corresponds to all company expenses incurred that do not depend on production or activities and remain constant. Example: cost of rent, insurance, surveillance, etc. As its name indicates, you must enter the total value of all the individual fixed costs.
- Variable cost per unit: Indicates the cost incurred by the company to generate each unit of its product. Usually, these costs are related to raw materials, labor, etc.
- Selling price per unit: This is the selling price assigned by the company to each unit of its product. To make a profit, this value must be higher than the unit variable cost.
- Expected units sales (Optional): This data is optional; in some exercises, you are asked to calculate if the company makes a profit or loss for a certain level of sales. If you are solving an exercise with these characteristics, you can enter the value; if you do not enter any value, the calculator will continue the process without problems.
- Click on Solve.
- The calculator will display the break-even formula and the calculations performed. You will also see the graph, which you can download to your computer.
Example:
Given the following data, calculate:
- Break-even Point (Units)
- Break-even point (monetary units)
- Profit in 100,000 units.
Selling price per unit = 8 per unit
Variable cost per unit = 4 per unit
Total Fixed Cost = 50,000 monetary units.
Solution:
We select the calculator to use:
We enter the example data in our calculator as follows:
When we click on solve we will obtain the following result:
The final graph is:
Final Reflection
The break-even point is the point at which the total cost of production equals the total revenue generated. It is the point at which the company stops operating at a loss. With our calculator, these concepts will be easier to learn.
