Break-even calculator for a bakery
With $2,000 of fixed costs a month, a price of $3.50 and $1.00 of cost per sale, you break even at 800 sales a month ($2,800 of revenue).
Free, runs in your browser, nothing is sent anywhere. Move the sliders to try your own numbers.
The numbers for these inputs
| Sales | Revenue | Total cost | Profit |
|---|---|---|---|
| 0 | $0 | $2,000 | -$2,000 |
| 160 | $560 | $2,160 | -$1,600 |
| 320 | $1,120 | $2,320 | -$1,200 |
| 480 | $1,680 | $2,480 | -$800 |
| 640 | $2,240 | $2,640 | -$400 |
| 800 | $2,800 | $2,800 | $0 |
| 960 | $3,360 | $2,960 | $400 |
| 1,120 | $3,920 | $3,120 | $800 |
| 1,280 | $4,480 | $3,280 | $1,200 |
| 1,440 | $5,040 | $3,440 | $1,600 |
| 1,600 | $5,600 | $3,600 | $2,000 |
How it works
Every sale leaves a margin: the price minus the variable cost of making and delivering it. Fixed costs (rent, software, salaries) do not change with sales, so you break even when margin x number of sales equals fixed costs.
Break-even sales = fixed costs / (price - variable cost), rounded up to a whole sale. Below that number you lose money; above it, every extra sale adds one margin to profit.
The chart shows revenue and total cost as lines; they cross at the break-even point. The table lists sales, revenue, total cost and profit around it.
Common mistakes
- Leaving out your own pay: if the business must also pay you, add it to the fixed costs.
- Treating a cost that grows with sales (payment fees, packaging, shipping) as fixed.
- Using the list price when most sales are discounted.
- Assuming demand: break-even tells you the target, not whether customers will buy that many.
Questions
How many sales do I need to break even?
800 a month, or $2,800 of revenue, with the numbers above.
What is my margin on each sale?
$2.50, which is 71.43% of the price.
What happens if I raise the price?
Each extra $1 of price adds $1 of margin per sale and lowers the break-even number. Move the price slider to see how fast it falls.
Which costs are fixed and which are variable?
Fixed: rent, subscriptions, salaries, insurance. Variable: ingredients, materials, packaging, shipping and payment fees, which grow with each sale.
Does break-even include tax?
No. It is before tax and before any pay you take from the business.
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