How to calculate Break-even revenue
The Break-even revenue formula, with plain worked examples you can check yourself.
Break-even revenue = F ÷ CM ratio
Worked examples
F = 50000 · CM ratio = 40%Break-even revenue = 125,000
F = 10000 · CM ratio = 25%Break-even revenue = 40,000
F = 40000 · CM ratio = 50%Break-even revenue = 80,000
How to use it
- Write down the values for each letter in the formula.
- Do the brackets first, then divide or multiply.
- Check the units before you compare results.
- Compare the answer with last period or with a competitor to see if it is good or bad.
This formula belongs to Costs & Break-even.
Related terms
Practice Break-even revenue with real numbers
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