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Break-even calculator
The break-even point is the number of sales at which what's left from each sale covers your rent, bills and staff exactly: no profit, no loss. Divide monthly fixed costs by the selling price minus the variable cost per item; with ₺93,000 of fixed costs and ₺62 left per sale, you need 1,500 sales a month. For memberships, divide by the package price minus the instructor's share.
Calculator
Result
Sales needed a monthEvery sale after this leaves a profit
- Sales needed a day
- Left per sale
- Monthly takings needed
- Profit needed a day
It opened with example numbers; type your own and the result changes at once. Nothing is saved.
How it's worked out
Monthly fixed costs ÷ (Selling price − Variable cost per item)
Monthly fixed costs ÷ Days open in the month
Monthly fixed costs ÷ (Package price − Package price × Instructor's share %)
How to use it
- Choose whether you sell products or memberships.
- Add up rent, bills, total staff cost and your own salary, and enter them as monthly fixed costs.
- For products, enter your average selling price and what one item costs you in materials and packaging; for memberships, the average monthly package price and the instructor's share.
- Put the daily figure next to what you actually sell; if you fall short most days, look again at prices, hours or costs.
Watch out
- Put your own salary in fixed costs: leave it out and the month you break even looks covered, while you've worked that month for nothing.
- Profit a day isn't takings: keeping ₺3,100 takes 50 sales that leave ₺62 each, and at ₺90 that's ₺4,500 through the till.
- Don't forget the instructor's share: ₺32,400 divided by a ₺4,500 package says 8 members will do; take off a 40% share and you need 12.
- Don't guess the variable cost; work out what one sale costs in materials from your buying prices with the recipe cost calculator.
Frequently asked questions
Do I need to break even every single day?
Not every day. The daily break-even figure is the month's average: a quiet Tuesday can fall short and a busy Saturday can make up for it; what counts is the week and the month. Open 30 days a month, a ₺3,100 daily target is ₺21,700 a week. If your weekly total falls below that, don't wait for the end of the month; plan the sales that close the gap that same week.
What's the quickest way to lower your break-even point?
The quickest way is usually to grow what's left from each sale, because that works on every sale. With ₺93,000 of fixed costs, a ₺90 price and a ₺28 cost, you need 1,500 sales a month. Raising the price by ₺5 brings that down to 1,389; cutting fixed costs by ₺5,000 brings it to 1,420. If customers drop off after a price rise, though, the gain melts away, so watch sales for a few weeks.
Does break-even cover what you spent to open?
No. Break-even finds the sales that cover your monthly costs; opening costs such as a fit-out, machines or your first stock aren't in it. You win those back from the profit above break-even: if you spent ₺300,000 and make ₺25,000 a month beyond break-even, the money comes back in about 12 months. If you repay a loan every month, put the instalment in fixed costs.
How many members does a pilates studio need to make a profit?
As soon as it has more members than it takes to cover its fixed costs. A studio with ₺32,400 of monthly fixed costs that gives the instructor 40% of a ₺4,500 package keeps ₺2,700 per member: 12 active members cover the costs exactly, and every member after that leaves ₺2,700 a month. If the instructor is on a salary, add it to fixed costs and leave the share empty.
More tools
- Profit margin calculatorEnter cost and price to see your margin and markup, or start from a target margin and get the price to charge.
- Price increase calculatorWork out a supplier's price rise, what it adds to one product's cost, and the new selling price that protects your margin.
- Unit cost calculatorEnter the total and the quantity to get your cost per kg, gram, litre, metre or piece, by the case or the sack too.
- Recipe cost calculatorEnter your ingredients line by line to see the cost of the batch, of each slice or portion, and the price for your target margin.
- Waste calculatorFind the share of what you made that was thrown away, spoiled or cut off, value it at cost, and see what it adds up to in a month.
- No-show cost calculatorWork out your no-show rate and what missed appointments cost you each week, month and year, and what one more customer a week is worth.
- Class pack price calculatorSee what an 8-class or unlimited pack works out at per class, and how much of that goes to the instructor and how much stays with the studio.
Have a good day at work!
Write your fixed costs once and Çetele puts break-even into one sentence in the till's Month view, such as “Fixed costs need about ₺1,200 profit a day; this month averages ₺950”, and for memberships it says “About 12 active members cover the fixed costs; you have 9.”