A breakeven is the number of units that need to be sold to cover costs. After the breakeven point is reached, the next unit sold will yield a total profit for the organization.
Breakeven Units = Fixed Costs / (Price per Unit – Variable Cost per Unit)
- Wikipedia – Break-even – Wikipedia entry on the break-even point.
- Investopedia – Break-Even Analysis – An overview of break-even analysis and how to calculate it.
- The Balance SMB – Use this formula to calculate a Breakeven point – An explanation of the break-even point and how it is calculated.
- Accounting Tools – Breakeven point – A description of the breakeven point.
- Entrepreneur – How to calculate ‘Breakeven’ – An overview and breakdown of the breakeven point.