Break-even point
How many units must you sell before income covers your costs?
Fixed costs (rent, equipment) stay the same however much you make. Variable costs rise with each unit. Every sale contributes price minus variable cost towards the fixed costs, so the break-even quantity is fixed cost ÷ (price - variable cost).
Example: fixed costs 3,000, each unit costs 15 to make and sells for 20.
Classic Financial II
Start on the main screen: Press 2ND then CPT (QUIT) to leave a worksheet and return to the plain calculator. ON/OFF also drops back to the standard screen and clears an error.
Open the break-even worksheet (2nd, 3). Enter FC = 3000, VC = 15 and P = 20, pressing enter and down each time.
2NDBRKEVN33000ENTER↓15ENTER↓20ENTER↓Set the profit PFT to 0, then in the Q line type 0 and enter. Press CPT to compute Q.
0ENTER↓0ENTERCPT
You should seeQ= 600.00
Classic Financial II key reference · Classic Financial II manual
RPN Financial 12
Start on the main screen: There is no menu to leave: the display always shows the X register. Press f then R/S (P/R) to leave program mode, and clear a pending prefix by pressing ON.
Type fixed costs and ENTER.
3000ENTERWork out the profit per unit: 20, ENTER, 15, then subtract. Divide to get the units.
20ENTER15−÷
You should see600.00
Natural Scientific 991
Start on the main screen: Press MENU, then 1 (Calculate) to return to the main calculation screen. AC clears the line you are on.
Type fixed costs ÷ (price - variable cost).
3000÷(20−15)=
You should see600
Natural Scientific 991 key reference · Natural Scientific 991 manual
Tips
- If the variable cost per unit is as high as the price, you never break even. The calculator reports an error.