Find the sales volume needed to cover fixed costs, then estimate monthly path to profitability.
Inputs
Fixed costs (monthly)
Variable cost per unit
Selling price per unit
Projected monthly units sold
Break-even snapshot
Core math
- Contribution per unit
- $27.00
- Contribution margin
- 60.00%
- Break-even units
- 186
- Break-even revenue
- $8370.00
Monthly projection
- Projected units / month
- 220
- Projected contribution / month
- $5940.00
- Projected monthly profit
- $940.00
- Months to break even
- 0.85 (about 1)
How to use this in planning
Fixed costs
Include rent, software, payroll minimums, insurance, and other costs that do not vary.
Contribution margin
This is your per-unit fuel for covering fixed costs. Small changes here can shift break-even quickly.
Scenario testing
Try optimistic and conservative pricing and volume inputs before you commit to launch budgets.
Early warning signal
If break-even months keep extending, revisit offer pricing, service scope, or monthly fixed spend.
Estimates only, not financial advice. Replace defaults with your real numbers and validate assumptions before making capital decisions.