Enter the operating expenses ($) and the gross margin (%) into the calculator to determine the Break Even Revenue. 

Break Even Revenue Formula

The following formula is used to calculate the Break Even Revenue. 

BER = OE / (GM/100)

  • Where BER is the Break Even Revenue ($)
  • OE is the operating expenses ($) 
  • GM is the gross margin (%) 

How to Calculate Break Even Revenue?

The following example problems outline how to calculate Break Even Revenue.

Example Problem #1:

  1. First, determine the operating expenses ($). In this example, the operating expenses ($) is given as 324.
  2. Next, determine the gross margin (%). For this problem, the gross margin (%) is given as 30.
  3. Finally, calculate the Break Even Revenue using the equation above: 

BER = OE / (GM/100)

The values given above are inserted into the equation below:

BER =324 / (30/100) = 1080 ($)

Example Problem #2: 

The variables needed for this problem are provided below:

operating expenses ($) = 512

gross margin (%) = 60

Entering these values and solving gives:

BER = 512 / (60/100) = 853.33 ($)