Break-even calculator
Find out how much you must sell to cover rent, bills and wages. With 30,000 a month in costs and items bought at 30 and sold at 50, each sale leaves 20, so you need 1,500 sales, or 75,000 in takings, a month.
Updated:
Takings needed a month
75,000.00
a day: 2,884.62
Sales needed a month
1,500 (a day: 58)
Each sale leaves towards costs
20.00
Worked out in your browser; nothing is sent.
Which costs are fixed?
- Rent, electricity, water, internet
- Wages
- Card machine fees, software, the accountant
- Loan repayments
The goods you buy to sell are not fixed costs: they grow with sales and are part of each item’s cost.
Two ways to work it out
- From an item’s price and cost: each sale leaves price − cost towards the fixed costs. Sales needed = fixed costs ÷ that amount, rounded up.
- From your average margin: easier for a shop that sells many things. Takings needed = fixed costs ÷ gross margin.
Fixed costs 30,000 a month, average gross margin 40%: 30,000 ÷ 0.40 = 75,000 in takings Open 26 days a month: 75,000 ÷ 26 = 2,884.62 a day
Credit sales and break-even
Break-even counts sales, not payments. A sale on credit pays no rent until it is collected, so keep an eye on what customers owe: how to get paid faster.
Put this calculator on your site
Copy the code into your page. The tool works for free, with a small Baki Fast link under it.
Questions
What if my price is below my cost?
Then every sale loses money, and no amount of sales covers the costs. The calculator says so; fix the price or the cost first.
How do I include the profit I want?
Add the monthly profit you want to the fixed costs. For 30,000 of costs and 20,000 of profit, type 50,000.