How many units — and how much revenue — do you need each month before your business stops losing money? Enter three numbers. No signup, no spreadsheet.
Rent, salaries, insurance, software — costs you pay even at zero sales.
Average selling price per unit, order, or customer.
Materials, payment fees, per-unit labor — costs that scale with each sale.
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Build my full plan free →The break-even point is where total revenue equals total costs — the volume at which the business stops losing money. The formula:
Break-even units = Fixed costs ÷ (Price per unit − Variable cost per unit)
The denominator is the contribution margin: what each sale contributes toward covering fixed costs after paying its own variable costs. Once monthly contribution passes your fixed costs, every additional sale is profit.
A coffee shop with $8,500/month fixed costs, a $6.20 average ticket, and $2.10 variable cost per order has a contribution margin of $4.10. Break-even = 8,500 ÷ 4.10 ≈ 2,073 orders per month (about 69 orders per day) = $12,853 revenue per month.
Compare break-even volume to your realistic capacity and traffic. If break-even requires 69 orders/day and comparable shops in your area do 45, the plan needs a higher ticket, lower rent, or a second revenue stream — that is a strategy question, not an arithmetic one.