Break-Even Calculator
Work out how many units, jobs or sales you need to cover your costs and start making a profit. Enter your fixed costs, selling price and variable cost per sale to calculate break-even quantity, revenue and contribution margin.
Use it for products, billable jobs, service bookings, contracts and digital sales.
Calculation Parameters
Costs that remain regardless of sales during the monthly period.
Amount charged per product, job, booking or customer sale, excluding GST.
Direct cost of each sale, including materials, labour, freight and merchant fees.
Enter amounts excluding Australian GST where appropriate. Keeping revenue and costs on the same GST basis avoids distorting the calculation.
You need 143 sales during this monthly period to cover fixed and variable costs.
Ceiling rule: 142.86 → 143 full sales
Visual Break-Even Continuum
A live map of the sales threshold between operating loss and operating profit.
What Changes Your Break-Even Point?
Sensitivity scenarios based on your current figures.
43 fewer sales than current
70 more sales than current
15 more sales than current
107 more sales than current
Break-Even Example for an Australian Small Business
An electrical services business has $6,000 in monthly fixed costs. A standard job sells for $250 ex GST and uses $100 in direct materials and other variable costs.
Job 41 is the first job above break-even
The first 40 jobs cover the stated fixed and variable costs. Each further job contributes $150 toward operating profit, before tax and other unmodelled items.
Fixed Costs vs Variable Costs
Classifying costs consistently makes the break-even result more useful.
- Premises rent
- Software subscriptions
- Insurance
- Base salaries
- Equipment leases
- Stock and materials
- Merchant fees
- Freight and packaging
- Job-specific labour
- Sales commissions
Break-Even Does Not Mean Good Profit
At exact break-even, the business has no operating profit buffer for slower sales, bad debts or unexpected cost increases.
Use break-even as a financial floor, then include a target profit to estimate a more useful sales goal.
How Break-Even Is Calculated
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Frequently Asked Questions
Common questions about break-even analysis for Australian businesses.
What is a break-even point?
The break-even point is the sales volume where total revenue equals fixed and variable costs. At that point the operating result is zero: the business is neither making an operating profit nor an operating loss.
How do I calculate break-even sales?
Subtract variable cost per sale from selling price to find contribution per sale. Divide fixed costs by that contribution, then round up to the next whole sale or job.
What is contribution margin?
Contribution margin is the share of each sales dollar left after variable costs. That amount first covers fixed costs and then contributes to operating profit after break-even.
Can I use a break-even calculator for a service business?
Yes. Treat a unit as a billable hour, appointment, completed job, project or booking. Include the direct costs that arise each time that service is delivered.
Does GST affect break-even calculations?
Break-even analysis generally compares consistent ex-GST amounts where appropriate. GST collected is not retained as business revenue, so this calculator expects selling prices and costs excluding GST.
Why does lowering my price increase my break-even point?
A lower price reduces the contribution from each sale when variable costs stay the same. More sales are then needed to cover the same fixed costs.
How do fixed costs affect break-even?
Higher fixed costs increase the total contribution required before the business breaks even. If contribution per sale is unchanged, break-even volume rises in direct proportion to fixed costs.
Can I calculate sales needed for a target profit?
Yes. Add the desired operating profit to fixed costs, divide by contribution per sale, and round up to a whole sale or job.
Know your break-even point. Now improve it.
Test the price needed to protect your margin as costs change.
General information only. Results depend on the figures entered and exclude tax, financing, timing and other costs unless included. This calculator is not financial, accounting or tax advice.