In accounting, the break-even 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.
This app is a perfect utility to calculate break even point for your business.Every investor has to know the break even on basis of his investment plan.This app helps the users to get break even point unit easy and fast to get.Now this app make your life much easier and break even is mo more complex.This app is also a education tool for students as they really can understand the break even point. Now a layman can use this app to plan and invest on daily basis.We devised a formulation based on different parameters to calculate break even unit best of investor usage.
The term is also used in investing. The breakeven point formula for a stock or futures trade is determined by comparing the market price of an asset to the original cost; the break even point is when the two prices are equal. For options trading, the breakeven point is the market price that an underlying asset must reach for an option buyer to avoid a loss if they exercise the option. For a call buyer, the breakeven point is when the underlying is equal to the strike price plus the premium paid, while the BEP for a put position is when the underlying is equal to the strike price minus the premium paid. The breakeven point doesnt typically factor in commission costs, although these fees could be included if desired.
Assume an investor buys Microsoft stock at $110. That is now their breakeven point on the trade. If the price moves above $110, the investor is making money. If the stock drops below $110, they are losing money. If the price stays right at $110, they are at the BEP, because they are not making or losing anything.