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

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## 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:**

- First, determine the operating expenses ($). In this example, the operating expenses ($) is given as 324.
- Next, determine the gross margin (%). For this problem, the gross margin (%) is given as 30.
- 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 ($)