With the illustrative inputs below, the result is 40 sales per month.
Try this with your own numbersFormula and worked example
Break-even sales = ceiling(fixed costs / (price − variable cost))
| Input | Example |
|---|---|
| Monthly fixed costs | 8,000 |
| Average price per project | 500 |
| Variable cost per project | 300 |
| Calculated result | 40 sales per month |
Choose reliable inputs
Include software licences, delivery time, revisions and ongoing support when costing a project. For this web design calculation, use project time logs, licence invoices and retainer scopes and a consistent definition of one project.
- Design hours: include the portion belonging to this project or reporting period, and record where the value came from.
- Development: include the portion belonging to this project or reporting period, and record where the value came from.
- Revisions: include the portion belonging to this project 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.
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.