Break-even revenue answers one question: how much do I need to sell before this stops losing money? With your fixed costs and contribution margin, the answer is a single division — but it's one of the most important numbers in the business.
Rent, salaries, software — costs that don't scale with sales.
% of each sale left after variable costs (COGS, shipping, fees).
If set, also shows break-even in orders.
Break-even revenue
$10,000
Every sale above break-even contributes to profit at your contribution margin rate.
Break-Even Revenue = Fixed Costs ÷ Contribution Margin
The share of each sale left after variable costs. A $100 sale with $40 of product, shipping and fee costs has a 60% contribution margin.
Roughly, if your fixed costs are cash costs. It ignores timing differences like inventory purchases made before sales happen — see the cash runway calculator for that.