Break-even calculator for a freelancer
With $2,500 of fixed costs a month, a price of $60.00 and $5.00 of cost per sale, you break even at 46 sales a month ($2,760 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 | $2,500 | -$2,500 |
| 10 | $600 | $2,550 | -$1,950 |
| 20 | $1,200 | $2,600 | -$1,400 |
| 30 | $1,800 | $2,650 | -$850 |
| 40 | $2,400 | $2,700 | -$300 |
| 50 | $3,000 | $2,750 | $250 |
| 60 | $3,600 | $2,800 | $800 |
| 70 | $4,200 | $2,850 | $1,350 |
| 80 | $4,800 | $2,900 | $1,900 |
| 90 | $5,400 | $2,950 | $2,450 |
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?
46 a month, or $2,760 of revenue, with the numbers above.
What is my margin on each sale?
$55.00, which is 91.67% 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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