# Break-even point (BEP) calculator

## How to use break-even point calculator

### Inputs required

**Fixed expenses:**

These are expenses that do not change with production of units or provision of services to customers. You need to enter in this field the total fixed expenses for the period for which you are calculating break-even point. For example if your monthly and annual fixed expenses are $500 and $6,000 respectively and you are calculating the break-even point for the next month, you need to use the amount of $500 as the fixed expenses.

**Variable expenses per unit:**

Variable expenses vary with a change in producing and selling activities. Fill this field with the variable expenses that you incur to manufacture and sell a single unit of product.

**Sale price per unit:**

The price at which a single unit is sold in the market.

### Outputs to be generated:

**Break-even point in dollars:**

This output tells the dollar sales needed to break-even.

**Break-even point in units:**

This output tells the number of units to be sold to break-even. The BEP calculator first calculates the break-even point in sales by using the basic BEP formula and then divides the BEP sales by the sale price per unit to find the BEP in units.

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