Break-even revenue: Expressing Break-Even as Sales Revenue
Break-even revenue divides fixed cost by the contribution margin ratio. It is useful when planning a sales target in money rather than units.
Use the Break-even revenue Calculator to enter your own figures and compare the result with the worked example below.
Break-even revenue formula
Revenue = Fixed costs ÷ Contribution margin ratio
Worked example
| Item | Example value |
|---|---|
| Fixed costs | 10000 USD |
| Contribution margin ratio | 40 % |
| Break-even revenue | 25,000 USD |
These are illustrative inputs, not current prices, rates or recommended targets. Where a currency is shown, keep all comparable money amounts in the same currency; conversion examples identify the two sides separately.
How to interpret the result
For several products, the sales mix must support the assumed contribution ratio. A change in mix can move the break-even point.
Related calculations
Method and further reading
The example follows the FinMathly calculator method. For broader background, see SEC: Understanding financial statements. The background resource may use jurisdiction-specific terms; it does not replace the assumptions of this calculator.
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