Break-Even Point Calculator
How many customers a month do you need to cover rent, salaries and other fixed costs? Calculate your break-even point and daily target instantly.
Rent, salaries, subscriptions — costs independent of customers
The average amount a customer leaves
Cost that occurs with each service, such as products or materials
To calculate the daily target
Enter fixed costs and revenue to see your break-even point.
What is the break-even point?
The break-even point is where your revenue equals your total costs — the point at which you make neither profit nor loss. Knowing it is the basis for setting monthly targets and pricing decisions. The formula is simple: divide your monthly fixed costs by the contribution margin per customer (revenue minus variable cost); the result is how many customers a month you need to cover your costs.
Frequently Asked Questions
How is the break-even point calculated?
Break-even units = Monthly fixed costs ÷ (Revenue per customer − Variable cost per customer). If there is no variable cost, divide fixed costs directly by revenue per customer.
What is the difference between fixed and variable costs?
Fixed costs are independent of customer count (rent, salaries, subscriptions). Variable costs occur with each service (products/materials used). They play different roles in the break-even calculation.
What does contribution margin mean?
Contribution margin is what's left after you subtract a service's variable cost from the revenue you earn from a customer. Each customer contributes that amount toward covering your fixed costs.
How do I lower my break-even point?
Three ways: reduce fixed costs, raise prices, or lower variable cost per customer. Increasing occupancy and repeat-customer rates also helps you pass break-even faster.
Track your real numbers
Piyzi automatically reports your revenue, expenses and profit-and-loss; see your break-even point in real time instead of estimating it.