Calculate how much revenue you need to cover your costs and become profitable.
Break-even is the point where your total revenue equals your total costs.
Understanding break-even helps you price correctly, manage risk, and forecast cash flow.
The formula is:
If your monthly fixed costs are $5,000...
I design and build simple, dependable web tools for Canadian businesses — invoicing helpers, financial calculators, renewal reminders, and internal workflow systems.
If this tool saved you time, I can build one tailored to your exact process.
Start a ConversationA “good” contribution margin depends on your industry. Many service businesses aim for 50–70% margins, while product-based businesses may operate closer to 30–50%. Higher contribution margins reduce your break-even point and improve financial stability.
No. GST/HST is a pass-through tax collected on behalf of the government. Break-even calculations should be based on your net revenue and actual business costs, not tax collected from customers.
No. Break-even is the point where total revenue equals total costs. At this point, you are not losing money, but you are not making profit either. Profit begins only after you exceed your break-even level.
Fixed costs remain the same regardless of how many units you sell (rent, insurance, salaries). Variable costs increase as you produce or sell more units (materials, shipping, transaction fees).
Understanding your break-even point helps you price correctly, manage risk, forecast cash flow, and make informed decisions about growth and investment.
This calculator is provided for informational and educational purposes only. It does not constitute financial, legal, tax, or business advice.
While reasonable efforts have been made to ensure accuracy, results are estimates based on the information you provide. Actual business performance may vary. You should consult a qualified professional before making financial decisions.
All calculations are performed locally in your browser. No data entered into this calculator is transmitted to our servers, stored, or saved. Your inputs remain private to your device.