SellersCalc

Finance math

Break-even Revenue Calculator

The revenue line where the month stops losing money — in monthly and per-day terms.

Break-even revenue = fixed costs ÷ gross margin%. Every revenue dollar contributes its margin toward the fixed bills: with $12,000 of monthly fixed costs and a 40% gross margin, break-even is 12,000 ÷ 0.40 = $30,000 of monthly revenue — about $986 per day (monthly × 12 ÷ 365). Below that line the month loses money no matter how good the products are; above it, every dollar drops 40 cents to profit. Enter your fixed costs and blended margin to get the monthly and daily targets.

Break-even Revenue Calculator — your numbers

Break-even revenue (monthly)

$30,000.00

Daily revenue needed

$986.30

Estimate only. Results reflect exactly the numbers you enter — verify against your own accounting before making pricing decisions.

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Worked examples

Lean store, healthy margin

Monthly fixed costs $12,000.00
Gross margin 40%
Break-even revenue (monthly) $30,000.00
Daily revenue needed $986.30

$30,000 a month — roughly $986 a day — keeps the lights on; everything past it is profit.

Heavier overhead, thinner margin

Monthly fixed costs $20,000.00
Gross margin 25%
Break-even revenue (monthly) $80,000.00
Daily revenue needed $2,630.14

The double squeeze: $80,000 of monthly revenue needed, $2,630 every single day.

Frequently asked questions

Which margin percentage should I enter?

Your blended contribution margin: what is left of an average revenue dollar after every cost that scales with orders — product, shipping, payment and marketplace fees, packaging, and per-order ad spend if you buy customers with ads. Using your headline product margin while ignoring fees and ad costs will understate break-even, sometimes badly.

How is break-even revenue different from break-even units?

Same idea, different denominator. Units divide fixed costs by the dollar contribution of one specific product — ideal for single-product analysis. Revenue divides by the blended margin percentage across everything you sell, which is the right lens for a whole store where the mix shifts month to month.

My margin differs a lot by product — does a blended number still work?

Yes, if it is weighted by what actually sells: total gross profit ÷ total revenue from your last 60–90 days of orders. Recompute it when the mix moves — a promotion that shifts sales toward low-margin items silently raises your break-even in the middle of the month you least expect it.

How do I turn break-even into a real profit target?

Add the profit you want to fixed costs and rerun: needing $6,000 of monthly profit on top of $12,000 of costs at a 40% margin means (12,000 + 6,000) ÷ 0.40 = $45,000 of revenue. The same trick prices in your own salary — a break-even that excludes paying yourself is a slow-motion loss.

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Part of the Store Finance collection.