The break-even point (also known as critical turnover) is reached when the turnover is sufficient to cover the operating costs.
One popular method is as follows:
Gross profit margin = (gross profit / year turnover) x 100% = ____%
Break-even = (total cost / gross profit margin%) x 100 = $_______
Another formula you can use is:
Break-even = (fixed costs) / (selling price – variable costs)