Business Breakeven and Profit-Volume Calculator

In accounting, the breakeven point formula is determined by dividing the total fixed costs associated with production by the revenue per individual unit minus the variable costs per unit. In this case, fixed costs refer to those which do not change depending upon the number of units sold. The Profit-Volume analysis is important because it is used to understand the effects of differing levels of activity on the financial results of the business conducted. Specifically, it helps to determine a company's break-even point.