Fixed costs
Monthly costs that do not change directly with each extra sale, such as rent and a fixed salary.
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Jengabiz Incubator · Free business tool
Find the monthly sales volume your product or service needs to break even. Test your price, costs, expected sales and profit target in Kenyan shillings.
Each sale contributes something towards fixed costs. Break-even happens when those contributions cover the fixed costs.
Use figures for one product or service and the same monthly period.
Break-even calculator
Use monthly fixed costs, then enter the selling price and variable cost for one unit or service.
Enter your figures or try the sample to see how the calculator works.
Your monthly break-even
The lines meet at the calculated break-even point. The chart is an estimate based on constant price and cost per unit.
Understand the result
Monthly costs that do not change directly with each extra sale, such as rent and a fixed salary.
The extra direct cost of selling or providing one more unit, such as materials or packaging.
Selling price minus variable cost. Each contribution helps cover fixed costs and then profit.
Questions
If you sell whole items or complete services, you must reach the next whole sale to cover all fixed costs. The chart marks the exact mathematical point.
Each sale then contributes nothing, or creates a loss, before fixed costs. Review the price or direct cost assumptions; there is no finite break-even volume under those inputs.
This calculator models one product or service at a time. A business with several products needs to account for its sales mix and different contributions.
Break-even is a profit estimate based on the inputs. Payment timing, inventory, financing and other cash needs require a separate cash-flow review.
A Jengabiz Business Clinic can help you examine pricing, margins, cash flow and the decisions affecting profitability.