Break-even calculator for a salon
With $5,000 of fixed costs a month, a price of $120.00 and $40.00 of cost per sale, you break even at 63 sales a month ($7,560 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 | $5,000 | -$5,000 |
| 13 | $1,560 | $5,520 | -$3,960 |
| 26 | $3,120 | $6,040 | -$2,920 |
| 39 | $4,680 | $6,560 | -$1,880 |
| 52 | $6,240 | $7,080 | -$840 |
| 65 | $7,800 | $7,600 | $200 |
| 78 | $9,360 | $8,120 | $1,240 |
| 91 | $10,920 | $8,640 | $2,280 |
| 104 | $12,480 | $9,160 | $3,320 |
| 117 | $14,040 | $9,680 | $4,360 |
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?
63 a month, or $7,560 of revenue, with the numbers above.
What is my margin on each sale?
$80.00, which is 66.67% 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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