Glossary

Break-even point

The break-even point is the sales level that covers all your costs exactly, so you neither make nor lose money there.

What it means for a shop owner

It equals fixed costs divided by the profit margin. Every sale above it is profit and every sale below it is a loss, so it tells you how much you must sell each month to survive. A higher rent or a lower margin pushes it up.

A worked example

Fixed costs are 3000 a month and the margin is 25%. Break-even = 3000 ÷ 0.25 = 12000 units of sales a month.

Related

Try it in your shop, free, no card.

The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes