Break-even point
The break-even point is the turnover at which the contribution margin exactly covers fixed costs and the result is zero; it follows from fixed costs divided by the contribution margin ratio.
Definition
The figure is most useful as a monthly one: a business with CHF 30,000 of fixed costs a month and a forty per cent margin needs CHF 75,000 of turnover to land at zero. That is a number people remember.
The calculation assumes a stable margin. With widely differing products at differing margins, the break-even point is only as accurate as the assumption about the mix.
What the software must be able to do
Hardly any accounting program calculates this by itself. What it has to deliver are the components: the fixed-cost block and the gross margin, continuously rather than only at year end.
Checked Aug 2026
More terms under Bookkeeping and retention: Accrual principle Accrued liabilities Annual accounts Association accounting Balance sheet Balance sheet total Book value Business assets Business expenses Cash book Cash flow statement Cash receipts Contribution margin Cost centre Current assets Debit and credit Depreciation Double-entry bookkeeping Duty to keep accounts EBIT EBITDA Equity Equity ratio Financial year Fixed assets Fixed costs Foreign currency General ledger Gross profit Hidden reserves Income statement Inventory count Journal Journal entry Liabilities Liquidity Loss carry-forward Membership dues Net profit Opening balance sheet Overheads Pass-through item Prepaid expenses Provision Record-keeping ordinance Reserves Retained profit Simple accounts Swiss SME chart of accounts Tamper resistance Turnover Value adjustment Variable costs Volunteer-run structure Voucher Year-end closing modules