Break-even point

The sales level at which revenue exactly covers all costs. Below it every day loses money; above it, contribution turns into profit.

Break-even is where contribution (revenue minus variable costs) equals fixed costs. In units: fixed costs divided by contribution per sale. It converts an abstract cost structure into a concrete daily target: "we need 41 covers a day" is actionable in a way a P&L is not.

Knowing it changes decisions: whether a membership price can survive heavy users, what a rent increase really demands, how much a quiet January actually burns. It also exposes the leverage of small moves; a modest ticket or margin improvement can pull break-even down by a surprising number of sales.

Compute yours in a minute with the break-even calculator, then put the number where the team can see it.