Break-Even Point for Small Business
Find your profit point quickly with simple tools and real-life examples
Why Small Businesses Need Break-Even Analysis
Know Your Minimum Sales
Understand exactly how many products or hours you must sell to cover all costs before making profit.
Price With Confidence
Set prices that cover costs and hit profit targets without guessing.
Control Costs
See how cutting overhead or supplier costs lowers the sales you need.
Plan Cash Flow
Forecast when cash coming in will exceed cash going out.
Simple Break-Even Formula for Small Business
Formula
Real Words
Take all fixed monthly costs. Divide by the profit you make on one sale. The answer is how many sales you need this month to break even.
Step-by-Step for Busy Owners
- List Fixed Costs – Rent, insurance, salaries, software, etc. (costs that don’t change with sales)
- List Variable Costs – Materials, packaging, payment fees, hourly labor, etc. (costs tied to each sale)
- Decide Selling Price – What you charge customers for one unit or one hour of service
- Plug Into Formula – Use the calculator below or the spreadsheet template
- Take Action – Adjust price, cut costs, or increase sales targets based on the result
Real-Life Small Business Examples
Coffee Cart
Fixed Costs: $2,400/month (rent, permit, insurance)
Variable Cost per Coffee: $1.50 (beans, cup, milk)
Selling Price: $4.50
Freelance Designer
Fixed Costs: $1,000/month (software, internet, insurance)
Variable Cost per Project: $50 (stock photos, tools)
Selling Price: $500 per logo
Online T-Shirt Store
Fixed Costs: $600/month (platform, ads, utilities)
Variable Cost per Shirt: $12 (shirt, print, shipping)
Selling Price: $25
Instant Break-Even Calculator
Break-Even Units: —
Break-Even Revenue: $— / month
Download the Free Spreadsheet
Small-Business Break-Even Template
Ready-to-use Google Sheets & Excel file with formulas, charts, and example data.
Download Now