Running a business
Break-even calculator
How much you have to sell before the month pays for itself.
A starting point, not tax advice. Nothing you type leaves your browser.
How this works
What the number means
Every sale contributes its price minus its variable cost toward your fixed costs. That difference is the contribution margin, and break-even is simply fixed costs divided by it.
The number it produces is usually the most useful single figure a small business has, because it converts an abstract worry into a countable target: this many jobs, this month.
Worked example. With $6,000 of fixed costs, a $250 price and $90 of variable cost, each sale contributes $160. You break even at 38 sales, or $9,375 of revenue.
Sources
- Plain arithmetic. No published rate is involved.
Rates change. The CRA page is the authority, and these are reviewed every January.
Questions
What does it cost?
It depends on how many transactions you have, how many people you pay and how complex the year-end is. There is no charge for the first consultation, and you can ask what a piece of work will cost before you commit to it.
Next step
Want someone to check the real figure?
A calculator estimates. A consultation answers for your actual situation. The first one is free.