How to calculate breakeven point when you are preparing a marketing strategy or business plan ?

The breakeven point is the time when the business is neither losing nor gaining money. 

This is the pivotal moment when the business begins to be profitable. 

Will it take six months or two years for the business venture to reach its breakeven? 

The reader of your business plan will want to know when and at what level of sales the breakeven point will occur.

The breakeven point for sales is calculated as follows:

where fixed costs are those costs that don't change as sales go up or down (for example, rental of facilities) and variable costs vary in proportion to sales (for example, raw materials). This calculation could be included in the attachments.