Business Break-Even Calculator
Calculate when your new business or product will become profitable.
Includes time-to-breakeven and monthly projections.
Break-Even Timeline
Business break-even analysis determines when your cumulative revenue will cover all startup and ongoing costs.
Key inputs:
- Startup costs: One-time expenses to launch (equipment, licenses, inventory)
- Monthly fixed costs: Recurring expenses (rent, salaries, insurance)
- Monthly revenue: Expected income per month
- Monthly variable costs: Costs that scale with revenue (materials, commissions)
Formula:
Monthly Profit = Revenue - Fixed Costs - Variable Costs
Months to Break Even = Startup Costs / Monthly Profit
Example:
- Startup costs: $50,000
- Monthly revenue: $15,000
- Monthly fixed costs: $8,000
- Monthly variable costs: $3,000
- Monthly profit: $15,000 - $8,000 - $3,000 = $4,000
- Months to break even: $50,000 / $4,000 = 12.5 months
A faster break-even is better. Most small businesses aim to break even within 12–24 months.