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Break-even calculator

Break-even is the sales level where gross profit exactly pays for rent, payroll, other fixed costs and the loan payment.

The formula

Break-even revenue = (fixed costs + payroll + loan payment) / contribution margin %. Contribution margin is price minus the direct cost of each sale.

Why include the loan payment

A lender wants to see the business cover its loan, so a plan's break-even should include it. Accountants' break-even usually leaves out principal; both are useful.

Check it month by month

Sales rarely start at full volume. The templates show the monthly cash low point while sales ramp up, not only the break-even line.