Break-even chart

A break-even chart is a graph plotting total cost, total revenue and fixed cost against sales volume, with the break-even point where the total revenue and total cost lines cross.

ByHoang TruongUpdated July 5, 2026

See it move

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A break-even chart plots total revenue and total cost against volume, crossing at the break-even point. Aldara Snacks has fixed costs of €18,000, a €5 selling price and a €3 variable cost, a €2 contribution margin. The two lines cross at 9,000 units, where both revenue and total cost equal €45,000.

Where it fits

SubjectCost AccountingCoreTopicCost-Volume-Profit AnalysisCore

The formula

LaTeX

Q_{BE} = \dfrac{FC}{SP - VC}

Variables

$Q_{B E}$: Break-even sales volume (units)
$F C$: Fixed costs (€)
$S P$: Selling price per unit (€)
$V C$: Variable cost per unit (€)

Gives the sales volume at which the total-revenue and total-cost lines cross on a break-even chart.

Check yourself

PracticeCORE

Portella Bakery has fixed costs of €24,000 per month, sells its product at €8 per unit, and variable cost per unit is €5. On a break-even chart, at what sales volume do the total-revenue and total-cost lines cross, and what is total revenue at that point?

Select an answer to check your understanding.