Break-even

How many sales until it pays for itself?

Should you run the event? Hire the SDR? Launch the side project? Break-even math gives you the honest answer in thirty seconds.

The move

Break-even units = fixed costs ÷ profit per unit. Profit per unit (the "contribution margin") = price − variable cost per unit.

Worked example

Event costs $6,000 to run. Tickets $150, each attendee costs $30 in food

  1. Margin per ticket: $150 − $30 = $120
  2. $6,000 ÷ $120 = 50 tickets
  • Payment fees are a variable cost. 3% of $100 is $3 per sale.
  • For a hire: monthly salary ÷ monthly gross profit per customer = customers they must bring in.