ADLOOPZ BUSINESS TOOL
Break-Even Calculator
Find out how many sales your business needs to cover its costs and reach your desired monthly profit.
01
Your Business Numbers
Enter the basic economics of one sale and your monthly overhead.
$
Average amount a customer pays for one sale.
$
Costs directly associated with making one additional sale.
$
Costs you generally pay regardless of sales volume.
$
Leave at $0 if you only want your break-even point.
02
Contribution Per Sale
This is what each sale contributes toward your fixed costs and profit.
THE FORMULA
Selling Price − Variable Cost
=
Contribution Per Sale
$1,500
−
$875
=
$625
Contribution Per Sale
$625
Contribution Margin
41.67%
YOUR BREAK-EVEN POINT
How Much Do You Need To Sell?
48
sales per month
You need approximately 48 sales per month
to cover your $30,000 in fixed costs.
Break-Even Sales
48
Break-Even Revenue
$72,000
Monthly Fixed Costs
$30,000
Contribution Per Sale
$625
TARGET PROFIT
Sales Needed For Your Goal
THE FORMULA
Fixed Costs + Target Profit
÷
Contribution Per Sale
Sales Required
64
sales / month
Required Revenue
$96,000
To make $10,000 in monthly profit after covering
$30,000 in fixed costs, you need 64 sales per month.
Your Monthly Sales Goal
Your first sales cover variable costs. Your contribution then goes toward fixed costs and eventually profit.
0
48 sales to break even
64
What does break-even actually mean?
Break-even is the point where your contribution from sales exactly covers your fixed costs. At this point, the business has neither a profit nor a loss before taxes and other items not included in the model.