What revenue do I need to break even?

Break-even revenue = fixed costs ÷ gross margin %. The revenue level at which contribution covers fixed costs exactly — below it, the business loses money each month; above it, it starts to net profit.

Break-Even Revenue

There is no universal numeric benchmark for this decision. The right comparison depends on the industry, geography, business model, time period and exact metric definition. Use the business’s own history, economics and explicit target unless a verified benchmark matching that scope is available.

Break-Even Revenue

Break-even units calculates a unit-count floor; break-even revenue calculates a dollar-volume floor. The two together — by category or overall — give a fuller cut for mixed-margin portfolios. Use the right one for the question at hand.

Break-Even Revenue

Variable cost per sale lowers the margin and so raises the break-even revenue. Pair the variable-cost line with the gross margin — a higher variable cost both raises the break-even revenue and lowers the margin on every sale.

Break-Even Revenue