Business Break-Even Revenue Calculator
Revenue needed to cover fixed and variable costs.
Calculate monthly revenue needed to break even on fixed costs and a given variable cost ratio. Shows break-even monthly revenue from the values you enter.
What this tool does
Enter monthly fixed costs and variable costs as percentage of revenue. The tool shows break-even monthly revenue.
Enter Values
Formula Used
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Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
8,000 fixed monthly costs plus variable costs at 40% of revenue: break-even revenue = 8,000 / (1 - 0.40) = 13,333/month. Below this the business loses money; above it generates profit. Core startup maths.
A worked example
Try the defaults: monthly fixed costs of 8,000, variable costs as of revenue of 40%. The tool returns 13,333.33. You can adjust any input and the result updates as you type — no submit button, no reload. That's the real power here: seeing how sensitive the output is to one or two assumptions.
What moves the number most
The result responds to Monthly Fixed Costs and Variable Costs as % of Revenue. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.
The formula behind this
Fixed costs divided by contribution margin ratio (1 - variable ratio). Everything the calculator does is shown in the formula box below, so you can check the math against your own spreadsheet if you want.
Using this as a check-in
Re-run this every three months. A single reading tells you where you stand; four readings tell you whether things are improving. The trend matters more than any individual snapshot.
What this doesn't capture
The score is a composite of the inputs you provide. Life context — job security, family obligations, health, housing — doesn't appear in the math but shapes the real picture. Use the number as a prompt, not a verdict.
What to calculate alongside this
One figure by itself is fragile. The break even price calculator, the business idea profitability calculator, and the salon break even calculator cover adjacent ground — the answer to any one of them changes how you read the output from this tool. Worth a few minutes each, honestly.
Break-even revenue produces a monthly figure based on the inputs provided.
Inputs
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
Fixed costs divided by contribution margin ratio (1 - variable ratio).
References
Frequently Asked Questions
What counts as fixed?
Annualised version?
Should I target break-even or higher?
Seasonal business?
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