Break-Even Calculator for a New Small Business
How much you need to sell each month to cover your costs — the first number a lender looks for. Enter your costs below; nothing is saved or sent.
Your break-even, for your townFree numbers first · $49 for the full plan$6,100 of monthly costs ÷ 65% kept from each dollar of sales.
The break-even formula
Worked example. A food truck with typical costs spends 35% of each sale on food, packaging, card fees and repairs, so it keeps 65%. Its fixed costs, a helper’s wages and an example loan payment come to $7,629 a month. $7,629 ÷ 0.65 = $11,736 in monthly sales — about 38.1 orders per working day at a $14 average order.
Break-even for five common small businesses
| Business | Staffing | Cost to open | Monthly costs* | Kept per $1 of sales | Break-even sales / month |
|---|---|---|---|---|---|
| Food truck | Owner + helper | $113,916 | $7,629 | 65¢ | $11,73638.1 orders per working day |
| Cleaning business | Owner only | $4,610 | $420 | 86¢ | $4881 cleaning visit per week |
| Landscaping business | Owner + helper | $44,867 | $3,883 | 80¢ | $4,8543.9 service visits per working day |
| Junk removal business | Owner + helper | $56,152 | $6,019 | 70¢ | $8,5991.3 jobs per working day |
| Vending machine business | Owner only | $23,350 | $647 | 40¢ | $1,6175 machines |
*Fixed costs, wages and an example loan at the SBA’s maximum 7(a) rate for its size, in year one. “Owner only” break-even covers the business’s costs, not the owner’s pay.
Questions
How do you calculate break-even?
Add up your fixed monthly costs — including wages and any loan payment — and divide by the share of each sale you keep after variable costs. That gives the monthly sales you need. Divide by your average sale for the number of sales.
What is a good break-even point for a small business?
One you can reach in your first year with room to spare. With typical assumptions, a food truck needs about $11,736 in sales a month — about 38.1 orders per working day. If your break-even needs more customers than your location can deliver, change the plan before you spend money.
Should I include my own salary?
Run it both ways. Without your pay you see when the business stops losing money; with it you see when the business supports you. Lenders want to see both.
What is the difference between break-even and profit?
Break-even is the point where sales cover costs exactly. Every sale above it adds what you keep per dollar of sales to profit; every sale below it adds to the loss.
Sources
- U.S. Census Bureau: County Business Patterns, Economic Census and Nonemployer Statistics.
- U.S. Bureau of Labor Statistics: Occupational Employment and Wage Statistics.
- Federal Reserve: bank prime loan rate (via FRED).
Figures are computed by Main Street Plans from the published federal files listed above. See how we build our numbers.