How to Use the Calculator

Using our break-even calculator is easy:

• Enter your Monthly Fixed Costs: Add up all monthly expenses that don’t change with sales volume. eg. salary, rent, subscriptions etc.
• Input your Variable Cost Per Customer: Calculate what percentage of revenue typically goes to variable expenses.
• Add your Current Revenue: Enter your actual or projected monthly revenue.
• Results update instantly: The calculator automatically updates as you type.
• Hover over the chart: Move your mouse across the visualisation chart to view different revenue scenarios.

Revenue vs Costs Chart

The interactive chart shows the relationship between revenue (blue line), total costs (red line), and where your break-even point is.

What is a Break-Even Analysis & How Knowing It Will Enable You To Make Informed Decisions.

A break-even analysis is a fundamental financial tool that calculates the point at which your total revenue exactly equals your total costs—meaning you’re making neither profit nor loss. This critical metric helps business owners understand the minimum performance required to avoid losing money.

Unlike traditional break-even calculators that focus on units sold, our interactive calculator uses a revenue-based approach, making it perfect for service businesses, SaaS companies, and any business model where “units” are difficult to define.

The break-even point represents a crucial milestone for any business. Below this point, you’re operating at a loss. Above it, you’re generating profit. Understanding this threshold enables you to set realistic sales targets, evaluate pricing strategies, and make informed decisions about cost management.

Glossary

• Monthly Fixed Costs – The total costs your business incurs each month, regardless of how many customers you have.
• Variable Cost per Customer – The cost directly associated with serving one additional customer.
• Avg Monthly Revenue per Customer – The average income generated from each customer per month.
• Monthly Churn Rate – The percentage of customers you lose each month.
• Calculate Break-Even – The point where total revenue equals total costs, meaning no profit or loss.
• Contribution Margin per Customer / Month – The profit generated per customer after deducting variable costs.
• Break-Even Customers – The number of customers required to cover all fixed and variable costs.
• Customer LTV (Lifetime Value) – The total revenue you expect to earn from a customer over their lifetime.
• CAC Payback – The time it takes to recover the cost of acquiring a customer.
• Steady-State Customers Needed to Sustain Break-Even – The number of active customers required to maintain break-even, considering ongoing churn.