Break-even Calculator
BasicFixed costs are the bills you pay whether or not you make a sale (rent, insurance, software, wages you pay regardless). Variable costs are what each extra sale costs you. Choose when you want to break even, and enter amounts before tax (excluding GST or VAT).
This tool comes with a subscription
It’s included with Basic Business Toolset, from $12.99 a month.
See plans I already subscribeHow to calculate your break-even point
Your break-even point is the number of sales you need for your income to cover all your costs over a stretch of time: a week, a month, a few months or a year. Every sale after that is profit.
- Contribution per sale
- Contribution = selling price − variable cost per sale
- Break-even point
- Sales to break even = (fixed costs for the time frame + one-off costs) ÷ contribution per sale
- Sales for a profit target
- Sales needed = (fixed costs + one-off costs + profit target) ÷ contribution per sale
- Weeks and months
- A year is 52 weeks or 12 months, so fixed costs of $5,000 a month are $15,000 over 3 months and $1,153.85 a week
Example: With $5,000 of fixed costs a month, a $100 price and $40 of variable cost per sale, each sale contributes $60. To break even in a month you need 84 sales, about 20 a week. To also win back a $6,000 one-off cost within 3 months, you need 350 sales over the 3 months: 27 a week.
Common questions
What’s the difference between fixed and variable costs?
Fixed costs stay the same whether or not you make a sale, such as rent, insurance and software. Variable costs rise with each sale, such as materials, parts, fuel and card fees.
How can I lower my break-even point?
Raise your prices, lower the variable cost of each sale, or cut fixed costs. Small changes to price usually have the biggest effect.
Can I choose when I want to break even?
Yes. Choose a week, a month, 3, 6 or 12 months, or any number of weeks or months. The results show the sales you need in that time, and each week (and each month, for longer time frames).
What are one-off costs?
Things you pay for once and want to win back within the time frame, such as a new tool, a van deposit or the cost of setting up. They’re counted once, not every week or month.
Should I include GST?
No. Use prices and costs before tax (excluding GST, VAT or sales tax).
Does it work outside Australia?
Yes. Choose your country and the calculator uses its currency and tax wording, for the same countries as the Invoice Generator and Materials & Quotes. The maths is the same everywhere.
General information only, not tax or financial advice. Check with your accountant, tax agent or BAS agent for your situation.