The Math · Break-Even

When you stop bleeding.

Fixed costs ÷ contribution margin per unit. The number of jobs you need this month before profit starts.

Advertisement

Inputs

Rent, software, salaries, insurance — everything you pay whether you sell or not.

Receipts

Break-even units / month
Break-even revenue / month
Contribution margin / unit
Advertisement

How this is calculated
  • contribution_margin = price_per_unit − variable_cost_per_unit
  • break_even_units = fixed_costs / contribution_margin
  • break_even_revenue = break_even_units × price
Advertisement