FREE CALCULATOR
Break-even calculator
Find out how much you need to sell each month to cover your costs, then see that target per week and per day. A small what-if row shows what a change in price or costs would do.
How to read this
- Sales needed
- How much you need to sell in a month to cover your fixed costs and the cost of each sale. Below this line, the month loses money.
- Number of sales
- The same target counted in sales at your average price. Turning it into a weekly or daily number makes it easier to follow.
- What if
- Small changes to price or costs move the target. The row shows how far, using your own numbers.
A worked example
Fixed costs are $3,000 a month, the average sale is $50, and each sale costs $20 in materials and fees. Each sale leaves $30, which is 60% of the price.
$3,000 divided by 60% is $5,000 a month, or 100 sales. Open 20 days a month, that is 5 sales, or $250, a day.
Example figures, not client figures.
FAQ
Questions about break-even
What does break-even mean?
It is the amount you need to sell in a month to cover all your costs, with nothing gained and nothing lost. Sales above that point start to leave a profit.
Should my own pay be part of fixed costs?
If you pay yourself a regular amount, include it. Otherwise the break-even point only tells you when the business covers its bills, not when it also pays you.
What if my sales change a lot by season?
Run the calculator with a slow month’s numbers and again with a busy month’s. The difference shows how much the busy months need to carry.
Does the calculator save my numbers?
No. The calculation happens in your browser, and nothing you enter is stored or sent. You can print the result or save it as a PDF.
Choice Business Advisors
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