Working out Break Even Point within a specific month

[savingprivatemacro]

Hi there,

I need some help with a Break even point to understand at what point in x year and x month the Break Even Point is reached.

I have a fixed cost line i.e. £2,000,000 over the term of 3 years.

I have Revenue which increases year on year i.e. 1st year = £500k, 2nd year = £2M, 3rd year = £4M.

I am trying to find a calculation so I understand at what point the revenue over takes the cost and to drill down by year and month.

i.e. break even point is year 1 and month 3

Can you help?

 

[Steve=True]

Back to Algebra 1 or 2:

X=Months past first year
166667=2M/12 months

0=500k+166667*x-2M

Solve for x

x=1.5M/166667

x= 8.98months or 9 months

9 months plus the first 12 months = 21 months for breakeven.