Break-even calculator for a coffee shop
With $8,000 of fixed costs a month, a price of $4.50 and $1.20 of cost per sale, you break even at 2,425 sales a month ($10,913 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 | $8,000 | -$8,000 |
| 485 | $2,183 | $8,582 | -$6,400 |
| 970 | $4,365 | $9,164 | -$4,799 |
| 1,455 | $6,548 | $9,746 | -$3,199 |
| 1,940 | $8,730 | $10,328 | -$1,598 |
| 2,425 | $10,913 | $10,910 | $3 |
| 2,910 | $13,095 | $11,492 | $1,603 |
| 3,395 | $15,278 | $12,074 | $3,204 |
| 3,880 | $17,460 | $12,656 | $4,804 |
| 4,365 | $19,643 | $13,238 | $6,405 |
| 4,850 | $21,825 | $13,820 | $8,005 |
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?
2,425 a month, or $10,913 of revenue, with the numbers above.
What is my margin on each sale?
$3.30, which is 73.33% 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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