Break-even point

The revenue level where total costs are exactly covered.

Last reviewed 12 September 2026

Break-even converts your cost base into a sales target. It answers: how much do we need to sell this month to not lose money?

Track it monthly against actual revenue. It is the most motivating single line on a founder dashboard.

Formula

Break-even revenue = Fixed costs ÷ Contribution margin %

Frequently asked

What is break-even point?+

The revenue level where total costs are exactly covered. Break-even converts your cost base into a sales target. It answers: how much do we need to sell this month to not lose money? Track it monthly against actual revenue. It is the most motivating single line on a founder dashboard.

How do you calculate break-even point?+

Break-even revenue = Fixed costs ÷ Contribution margin %

Why does break-even point matter for founders?+

Track it monthly against actual revenue. It is the most motivating single line on a founder dashboard.

Related terms

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