Reviewed by David Chen, PE
Professional Engineer & Technical Consultant
This specialized Fundamentals of Engineering Calculator helps students and professionals determine the Break-Even Point (BEP) for engineering projects by solving for missing variables like fixed costs, unit price, or quantity.
Break-Even Analysis Tool
Leave one field blank to solve for it. Requires at least 3 inputs.
Calculated Result:
—Calculation details will appear here after clicking “Calculate”.
Fundamentals of Engineering Calculator Formula:
Source: NCEES FE Exam Reference Handbook | Financial Theory Reference
Variables:
- F (Fixed Costs): Costs that do not change regardless of volume (e.g., rent, salaries).
- P (Selling Price): The amount charged per unit sold.
- V (Variable Cost): The cost incurred for each additional unit produced (e.g., materials).
- Q (Quantity): The number of units needed to reach zero profit.
What is Fundamentals of Engineering Calculator?
The fundamentals of engineering calculator for break-even analysis is a critical tool for the FE exam (Engineering Economics section). It determines the point at which total revenue equals total costs ($TR = TC$), meaning the project or business is neither making a profit nor a loss.
In an engineering context, this calculation helps engineers decide if a manufacturing process is viable or which equipment purchase offers better long-term value based on projected production volumes.
How to Calculate Break-Even Point (Example):
- Identify your Fixed Costs (F) (e.g., $10,000).
- Determine the Unit Price (P) (e.g., $100).
- Determine the Variable Cost (V) (e.g., $60).
- Calculate the Contribution Margin: $P – V = $40.
- Divide Fixed Costs by Contribution Margin: $10,000 / 40 = 250$ units.
Related Calculators:
- Internal Rate of Return (IRR) Calculator
- Annual Effective Interest Rate Tool
- Depreciation Schedule Calculator (MACRS)
- Net Present Value (NPV) Analysis
Frequently Asked Questions (FAQ):
What happens if Price (P) is less than Variable Cost (V)?
The denominator becomes negative, meaning a break-even point can never be reached; every unit sold increases the total loss.
Is this relevant for all engineering disciplines?
Yes, Engineering Economics is a mandatory section for all FE Exam disciplines including Civil, Mechanical, and Electrical.
Can I use this for non-manufacturing projects?
Absolutely. Any project with initial investment and recurring costs vs. revenue can utilize BEP analysis.
Why is BEP important in FE Exam?
It tests an engineer’s ability to perform cost-benefit analysis and understand the financial viability of design decisions.