how do you calculate break even point
Once you have read and understood the example, you can type the numbers that are relevant to your business into the calculator to see your break-even point. Use this formula to calculate your break-even point. Break-even point = fixed costs Ã· gross profit margin. Fixed costs (e.g. $60,000).Gross profit margin (e.g. 90%). â. Break-even point. Use this formula to calculate your contribution margin.alculating your break-even point. To be profitable in business, it is important to know what your break-even point is. Your break-even point is the point at which total revenue equals total costs or expenses. At this point there is no profit or loss-in other words, you 'break even'.