Break-even calculator for a market stall
With $1,800 of fixed costs a month, a price of $15.00 and $6.00 of cost per sale, you break even at 200 sales a month ($3,000 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 | $1,800 | -$1,800 |
| 40 | $600 | $2,040 | -$1,440 |
| 80 | $1,200 | $2,280 | -$1,080 |
| 120 | $1,800 | $2,520 | -$720 |
| 160 | $2,400 | $2,760 | -$360 |
| 200 | $3,000 | $3,000 | $0 |
| 240 | $3,600 | $3,240 | $360 |
| 280 | $4,200 | $3,480 | $720 |
| 320 | $4,800 | $3,720 | $1,080 |
| 360 | $5,400 | $3,960 | $1,440 |
| 400 | $6,000 | $4,200 | $1,800 |
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?
200 a month, or $3,000 of revenue, with the numbers above.
What is my margin on each sale?
$9.00, which is 60% 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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