Break-even tells you when your business stops losing money and starts making it. If you sell products or project-based services, it’s the fastest way to sanity check pricing.
The Inputs
- Fixed costs: the bills you pay no matter what (rent, salaries, software).
- Variable cost %: % of revenue that scales with each sale (materials, payment fees).
- Price per unit: average selling price.
Plug those numbers into the Break-Even Calculator to see required units and revenue.
Use it to set targets
If your target is 200 units a month but your realistic capacity is 120, you either need to raise prices, lower costs, or widen the sales funnel.
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