Eleven POS
elevenpos.online
What is the break-even point?
Your break-even point is the sales level where total revenue equals total cost — no profit, no loss. Every sale beyond it adds profit.
Formula
- Contribution per unit = Selling price − Variable cost per unit
- Break-even units = Fixed costs ÷ Contribution per unit
- Break-even sales = Fixed costs ÷ Contribution margin %
- Units for target profit = (Fixed costs + Target profit) ÷ Contribution per unit
Fixed vs variable costs
Fixed costs stay the same whatever you sell: shop rent, salaries, electricity minimum, internet, software, loan EMI. Variable costs rise with each sale: product cost, packaging, delivery, payment fees, sales commission.
For shops with many products
Use your average selling price per bill and average gross margin. If your average bill is ৳800 with a 25% margin, contribution per bill is ৳200.