SMB Tools / Breakeven & margin
Where do you start making money?
Find the point where revenue covers costs, the margin each sale contributes, and how much a change in price or cost moves the line.
Your costs and price
Fixed costs (per month)
$
Average price per sale
$
Variable cost per sale
$
Contribution margin per sale$25.00 (62.5%)
You, and the volume you expect
What you need to pay yourself each month
$
Sales you expect per month (optional)
/ mo
Breakeven
480
sales per month · $19,200 in revenue
RevenueTotal cost
Breakeven26.2 a day
480 sales a month is about 18.5 a day over 26 selling days; paying yourself $5,000 takes 680 a month, about 26.2 a day. Enter the volume you expect to see whether it clears.
- Contribution margin
- $25.00 (62.5%)
- To pay yourself $5,000
- 680 sales
What moves the breakeven
| Change | Sales a month to break even | To pay you |
|---|---|---|
| As entered | 480 | 680 |
| Raise the price 10% | 414 | 587 |
| Cut the variable cost 10% | 453 | 642 |
| Cut fixed costs 10% | 432 | 632 |
| Price 10% lower (a discount) | 572 | 810 |
Price is the strongest lever: a 10% raise lifts the margin on every sale, while a 10% discount has to win far more sales than it gives up.
A self-assessment estimate using one average price and cost, not financial advice. Real businesses have a product mix and seasonality, so treat breakeven as a target to test.