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Business

Break-Even Calculator

Find the sales volume and revenue you need before the business starts making money.

Your numbers

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Result

Sales needed to break even 57
Break-even revenue $68,571
Sales needed to hit your profit target 79
Contribution per sale $560
You need 57 sales a month ($68,571) to cover fixed costs. Hitting 12,000 of profit takes 79.

Assumes one average price and variable cost. If you sell very different products or job types, run each separately: a blended average describes neither.

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Questions

About this calculator

What counts as a fixed cost?

Anything you owe whether or not you sell anything this month: rent, salaries, insurance, loan payments, software subscriptions and retainers.

Should the owner's salary be included?

Yes, if you draw one regularly. Leaving it out understates break-even and hides the fact that the business is being subsidised by you.

How does raising prices affect break-even?

Dramatically. Price rises go almost entirely to contribution, so a 10% price increase can cut the break-even volume by far more than 10%.

The formula

break-even units = fixed costs ÷ (price − variable cost)

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Good numbers still need customers

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