Cash Breakeven Point

Cash Breakeven Point
Formula to calculate cash breakeven point:

Cash Breakeven Point = (fixed costs - depreciation) / contribution margin per unit.



Cash breakeven point definition and explanation:


The cash breakeven point indicates the minimum amount of sales required to contribute to a positive cash flow.

The cash breakeven point is included in the financial statement ratio analysis spreadsheets highlighted in the left column, which provide formulas, definitions, calculation, charts and explanations of each ratio.