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 (%) 

To calculate the break even revenue, divide the operating expenses by 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 ($)