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ROI, Break-Even, and Commercial Maths Workbook

A stronger workbook-style pack for ROI, break-even thinking, contribution per unit, and practical commercial comparisons where volume and return both matter.

Filename: roi-break-even-and-commercial-maths-workbook.pdfFile size: 3 KB

Formula highlights

ROI
ROI % = gain / cost x 100
Break-even units
fixed costs / contribution per unit

What this workbook is for

Use this pack when a commercial decision needs both a return view and an operating-volume view. ROI and break-even complement each other rather than replacing each other.

Core formulas

  • ROI % = gain / cost x 100
  • contribution per unit = selling price - variable cost
  • break-even units = fixed costs / contribution per unit

How to interpret the result

ROI helps compare attractiveness. Break-even tells you how much output is needed before profit begins. Both are stronger when their underlying assumptions are written clearly.

Worked example prompt

A campaign or equipment purchase can be tested by estimating expected gain, defining the cost base, and then checking how many units or months of contribution are needed to recover the fixed outlay.

Common mistakes

  • Using revenue instead of contribution in break-even work.
  • Using ROI without a clear time horizon or cost definition.
  • Treating break-even as though it represents good profit rather than the point where losses merely stop.
Related calculators

Use the formulas in live tools.

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