Break-Even Calculator

Your break-even point is when your sales cover your fixed business costs. At that point, you stop losing money, but you are not making profit yet.

It is a useful number because it shows how much you need to sell each month just to keep the business running.

Different industries have different typical margins. A restaurant, salon, online store, and short-term rental can all use the same break-even math, but a good margin in one industry may look weak in another.

This calculator lets you choose an industry so you can compare your margin with a public benchmark. It is a quick guide, not a custom forecast for your business.

The calculator starts with one simple step: it subtracts your variable cost from your average selling price. That shows how much money each sale leaves to help cover fixed costs.

It then divides your monthly fixed costs by that amount. This gives you the number of sales you need to break even. Multiply that by your average selling price to get the monthly revenue you need. If you choose an industry, the calculator also compares your margin with a public benchmark range.

Fixed costs are bills you pay even if you make no sales that month. These can include rent, software, payroll, insurance, or loan payments. Variable costs change with each sale, like materials, card fees, packaging, or delivery.

If your price is too low or your variable costs are too high, each sale leaves less money to cover fixed costs. That means you need more sales to break even.

This calculator works for restaurants, retail stores, online shops, salons, home-service businesses, professional services, fitness studios, short-term rentals, and hotels. A sale can mean an order, booking, job, appointment, project, or customer transaction.

Use it before you change prices, sign a new lease, hire someone, add software, or test a new offer.

There are three main ways to lower your break-even point: cut fixed costs, raise your average price, or lower your variable cost per sale. Even small changes can reduce the number of sales you need each month.

If your break-even point still feels too high, your business may have extra drag from manual work, slow follow-up, or costs that are harder to control.