Break-Even Calculator
Find out how many sales you need to avoid going into the red.
Escaping from the Red
The Break-Even Point is the number one goal of any business that has just opened its doors. It is the exact moment of the month when your sales have generated enough money to pay the Variable Costs of the products AND also pay the Fixed Costs (rent, electricity, employees). You do not make a profit, but you also do not incur a loss.
The concept of Contribution Margin
To make the account balance, you need to know how much each sale \"contributes\" to paying the electricity bill. If a snack costs R$ 10 in bread and meat to make, and you sell it for R$ 30, R$ 20 remain. This R$ 20 is the Contribution Margin! It's with several R$ 20 notes accumulated throughout the month that you will be able to pay your fixed rent of R$ 2,000. In our example, it would be exactly 100 snacks to break even.