Break-even calculator for shops

The short answer

Your break-even point is the sales that exactly cover your fixed monthly costs. Divide fixed costs by the profit you make on each item: with ৳60,000 of monthly costs and ৳60 profit per item, you must sell 1,000 items — about 39 a day over 26 days — before the shop makes any money.

Break-even sales per month

৳250,000

Break-even items × selling price

Items to sell per month

1,000

Fixed costs ÷ (price − cost per item)

Items per day

39

Items per month ÷ 26 days

Profit per item

৳60

Selling price − cost per item

How it’s calculated

  • Profit per item = average selling price − average cost per item.
  • Break-even items = fixed monthly costs ÷ profit per item.
  • Break-even sales = break-even items × average selling price.

Worked example

Rent ৳25,000, salaries ৳30,000 and bills ৳5,000 make ৳60,000 a month. Items sell at ৳250 on average and cost ৳190: ৳60 profit each. 60,000 ÷ 60 = 1,000 items, or ৳2,50,000 of sales a month.

Limits

  • Uses averages; a shop with very different margins across products should work it out per category.
  • Doesn't include your own salary unless you add it to fixed costs.

Bisnesy tracks expenses by category and posts every sale's cost, so profit & loss shows how far above (or below) break-even each month really was.

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Questions

What counts as a fixed cost?

Anything you pay whether you sell or not: rent, salaries, electricity, internet, loan instalments, subscriptions.

How do I lower my break-even point?

Cut fixed costs, raise prices, or buy cheaper — anything that raises profit per item or lowers the monthly bill.

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