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 (\$)