Break-even calculator for a gym
With $6,000 of fixed costs a month, a price of $85.00 and $30.00 of cost per sale, you break even at 110 sales a month ($9,350 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 | $6,000 | -$6,000 |
| 22 | $1,870 | $6,660 | -$4,790 |
| 44 | $3,740 | $7,320 | -$3,580 |
| 66 | $5,610 | $7,980 | -$2,370 |
| 88 | $7,480 | $8,640 | -$1,160 |
| 110 | $9,350 | $9,300 | $50 |
| 132 | $11,220 | $9,960 | $1,260 |
| 154 | $13,090 | $10,620 | $2,470 |
| 176 | $14,960 | $11,280 | $3,680 |
| 198 | $16,830 | $11,940 | $4,890 |
| 220 | $18,700 | $12,600 | $6,100 |
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?
110 a month, or $9,350 of revenue, with the numbers above.
What is my margin on each sale?
$55.00, which is 64.71% 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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