Startup Break Even

Break Even Point (BEP) of a startup is the point at which startup is turning out sufficient returns each month to cover all your fixed and reoccurring costs. Earning beyond break even point is called profit.In equation BEP is “Total revenue per month = Total costs per month “. Revenue per month depends on total unit sale per month multiply with unit price.  So you have to have a good combination of per unit price and per unit cost to know exact number of unit required to sell to achieve break even point.