Break-even calculator for a SaaS app
With $1,200 of fixed costs a month, a price of $49.00 and $6.00 of cost per sale, you break even at 28 sales a month ($1,372 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 | $1,200 | -$1,200 |
| 6 | $294 | $1,236 | -$942 |
| 12 | $588 | $1,272 | -$684 |
| 18 | $882 | $1,308 | -$426 |
| 24 | $1,176 | $1,344 | -$168 |
| 30 | $1,470 | $1,380 | $90 |
| 36 | $1,764 | $1,416 | $348 |
| 42 | $2,058 | $1,452 | $606 |
| 48 | $2,352 | $1,488 | $864 |
| 54 | $2,646 | $1,524 | $1,122 |
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?
28 a month, or $1,372 of revenue, with the numbers above.
What is my margin on each sale?
$43.00, which is 87.76% 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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