Ponto de Equilíbrio

Break-even point: formula and concept

The break-even point (BEP) is the level of sales where total revenue lines up exactly with total costs, so you end up with neither a profit nor a loss. In units: BEP = fixed_costs / (price − variable_cost_per_unit). In revenue: BEP_R$ = fixed_costs / contribution_margin%, where contribution_margin = (price − var_cost) / price. Example: take a bakery with R$ 30,000/month in fixed costs, selling bread at R$ 1.50 against R$ 0.50 of variable cost. That works out to a BEP of 30,000 loaves a month. The version here is the condensed one, reporting the real production unit output; if you need the revenue-based BEP with a contribution-margin percentage breakdown, the full break-even calculator covers that. Safety margin: (current_sales − BEP) / current_sales.

Applications

It shows up in business planning, in the call to drop a product, in weighing a new investment, in BNDES credit lines for SMEs, and when a startup is trying to size its fixed costs. BEP also feeds into pricing and production targets where demand runs seasonal.

FAQ

What if price equals variable cost? Then the contribution margin drops to zero and the BEP runs off to infinity. Each unit only pays for itself and never chips in toward the fixed costs.

Do fixed costs really stay fixed? Only inside a relevant range. Push past a certain volume and you suddenly need another shift, another machine or a bigger space, and the fixed costs jump up a step.

How does BEP help decide on a promotion? When you cut the price, the contribution margin shrinks and the BEP climbs. The question to ask is whether the extra sales you expect will actually make up for that higher break-even volume.