<p>Lets say your investment is $x$. What does ROI mean? The money you get per period out of your investment (= revenue). </p>

<p>What does break even point mean? The point (here in time) where your total costs (here it is only the investment) are equal to your total revenue.</p>

<p>Therefore, the time $t$ at which the total costs are equal to the total revenue is the break even point, with $r$ being the ROI.</p>

<p>$$ costs = revenue \\
x = r x t \\
t=\frac1r$$</p>

<p>You can see, it does not depend on $x$, therefore it is possible.</p>

CC BY-SA 3.0
2015-04-03T10:53:18.110Z
2015-04-03T10:53:18.110Z
The Almighty Bob
<p>Is it possible to calculate how long it will take to reach Break Even Point if the information provided is only an ROI (Return On Investment) of 10%?</p>

<p>Only ROI is provided. If there is a way to calculate, please say so.</p>

<microeconomics>
Is it possible to calculate how long it will take to reach Break Even Point if the information provided is only an ROI (Return On Investment) of 10%?
kalapadago
# Is it possible to calculate how long it will take to reach Break Even Point if the information provided is only an ROI (Return On Investment) of 10%?

(Asked by: username_0 on 2015-04-03)

Is it possible to calculate how long it will take to reach Break Even Point if the information provided is only an ROI (Return On Investment) of 10%?

Only ROI is provided. If there is a way to calculate, please say so.

**Tags:** microeconomics


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## 1 answers

### Answer by username_1 on 2015-04-03. Score: 1

Lets say your investment is $x$. What does ROI mean? The money you get per period out of your investment (= revenue).

What does break even point mean? The point (here in time) where your total costs (here it is only the investment) are equal to your total revenue.

Therefore, the time $t$ at which the total costs are equal to the total revenue is the break even point, with $r$ being the ROI.

$$ costs = revenue \\
x = r x t \\
t=\frac1r$$

You can see, it does not depend on $x$, therefore it is possible.


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