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 ($)
- GM is the gross margin (%)
How to Calculate Break Even Revenue?
The following example problems outline how to calculate Break Even Revenue.
Example Problem #1:
- First, determine the operating expenses ($). 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 ($) = 512
gross margin (%) = 60
Entering these values and solving gives:
BER = 512 / (60/100) = 853.33 ($)
