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Translation service Service Volume Break-Even: worked example

Estimate the completed sales needed to cover a fixed cost base.

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Translation service / translation job economics
Answer

With the illustrative inputs below, the result is 40 sales per month.

Try this with your own numbers

Formula and worked example

Break-even sales = ceiling(fixed costs / (price − variable cost))

Example figures
InputExample
Monthly fixed costs8,000
Average price per translation job500
Variable cost per translation job300
Calculated result40 sales per month

Choose reliable inputs

Include software licences, delivery time, revisions and ongoing support when costing a project. For this translation service calculation, use project time logs, licence invoices and retainer scopes and a consistent definition of one translation job.

  • Translator time: include the portion belonging to this translation job or reporting period, and record where the value came from.
  • Review: include the portion belonging to this translation job or reporting period, and record where the value came from.
  • Formatting: include the portion belonging to this translation job or reporting period, and record where the value came from.

Use the same currency for every money input. Do not mix weekly costs with monthly revenue, or count the same expense in both an itemised cost and allocated overhead.

Should I count booked jobs or completed paid sales?

Use the delivery and revenue definition matching your cost period. Bookings can cancel and do not automatically produce cash.

Assumes stable average price and variable cost; multiple service mixes need separate analysis.

Compare a different assumption

What if this input changes?

If monthly fixed costs rises by 10%, this example changes by 4 sales per month. This shows the effect of one change; it does not predict what will happen.

Open the calculator, save your baseline, then change the input supported by the least reliable estimate in your records. Compare both scenarios before committing to a price or capacity promise.

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