Enter Your Numbers

Fixed Costs per Month (AUD) Rent, software, insurance, salaries — costs that don't change with sales volume

Variable Cost per Unit/Sale (AUD) Materials, packaging, cost of goods — costs that increase with each sale

Price per Unit/Sale (AUD) What you charge per unit sold or per job completed

Current Monthly Sales Volume (optional) Enter your actual or projected units sold per month to see your margin of safety

Your Break-Even Results

Break-Even Units/Month
—
units or sales needed

Break-Even Revenue
—
AUD per month

Contribution Margin

—

per unit sold

Contribution Margin %

—

of revenue per unit

Results are indicative. Actual figures vary based on your specific business conditions, seasonality, and accounting treatment.

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How Break-Even Analysis Works

The break-even point is where your total revenue equals your total costs — the minimum you need to sell to avoid a loss.

Break-Even Units = Fixed Costs ÷ (Price per Unit − Variable Cost per Unit)

The gap between your price and variable cost per unit is called the contribution margin — it's how much each sale contributes toward covering your fixed costs.

Once you know your break-even point, you can set revenue targets, price your services more confidently, and understand the impact of cost changes on your business.

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What Is Break-Even Analysis?

Break-even point is the number of sales you need to cover all your business costs. At break-even, revenue equals total costs — neither profit nor loss. Understanding your break-even helps set sales targets and pricing.

The formula: Break-Even = Fixed Costs ÷ (Price per Unit − Variable Cost per Unit)

Understanding Fixed vs Variable Costs

Fixed costs: Rent, salaries, insurance, software subscriptions — costs that don't change with sales volume.
Variable costs: Materials, contractor payments, delivery fees — costs that increase with each sale.

Why Break-Even Matters

Pricing decisions: Know the minimum price needed for profitability.
Goal-setting: Set realistic sales targets based on capacity.
Risk assessment: Understand how far from break-even you are.
Investment planning: Know how much revenue is needed before new investments pay off.

How to Use Break-Even Analysis

Once you know your break-even point, use it to make business decisions:

If you're below break-even, focus on increasing sales or reducing costs.
If you're above break-even, you have profit — consider reinvesting or pricing competitively.
When raising prices, recalculate — your break-even drops.
When costs rise, recalculate — your break-even rises.

Break-Even Calculator