Break-Even Calculator

Find the exact revenue number your business needs — before a single dollar becomes profit.

Rent, software, insurance, your salary — costs that don't change with revenue
Contractor fees, transaction fees, commissions — costs that scale with revenue
Your actual average monthly revenue

Your Break-Even Analysis

Contribution Margin Rate 70%
Break-Even Revenue (Monthly) $11,429
Current Monthly Revenue $10,000
Gap to Break-Even $1,429 short
Current Monthly Profit / Loss -$1,000

Your Monthly Revenue Targets

Three milestones — each one means something different for your business.

Floor
Tier 1
Survival
$11,429
Covers every expense. Zero profit. Below this, you're funding operations from savings.
Below target
+20% buffer
Tier 2
Stability
$13,714
Break-even plus a 20% cushion. Covers slow months and late invoices without panic.
Below target
+50% above B/E
Tier 3
Growth
$17,143
Profit large enough to reinvest. Real capital to hire, market, or build reserves.
Below target

How to Improve Your Break-Even

1. Reduce Fixed Costs

Lower monthly overhead without hurting quality:

  • Negotiate better rates on software subscriptions or insurance
  • Audit recurring expenses and cancel unused services
  • Consider shared office space or remote work options
  • Renegotiate vendor contracts annually

2. Increase Your Average Selling Price

Small price increases can shift your break-even dramatically:

  • Test 5–10% increases with new clients
  • Add premium packages or service tiers
  • Bundle offerings for higher perceived value
  • Improve positioning to justify your rate

3. Lower Variable Costs

Improve your contribution margin on every dollar earned:

  • Renegotiate contractor or fulfillment rates
  • Reduce payment processing fees
  • Automate processes to lower labor cost per project
  • Review commissions and referral fee structures

⚠️ Warning Signs You're Too Close to Break-Even

  • A 10% revenue drop would put you in the red
  • You can't afford to lose even one major client
  • There's no budget for marketing or growth investments
  • Seasonal slowdowns threaten your cash flow every year
Pro Tip: Knowing your break-even number is only half the equation. Use the three tiers above as your monthly dashboard — not just your revenue total. Landing in Stability means you're covered. Landing in Growth means you have real capital to deploy. Anything below Survival means your savings are subsidizing your business.

Using Break-Even for Growth Decisions

Before any major investment, run the numbers:

  • Hiring: How much additional revenue does this role need to generate or free up?
  • Marketing: What's your maximum cost per acquisition to stay profitable?
  • Equipment / Tools: How long until efficiency gains cover the investment?
  • Expansion: What break-even does the new service line or market require?

Need Help Making These Numbers Work?

Get expert guidance on improving your break-even point and building a more profitable business.

Schedule Your CFO Strategy Session