Why you need this
Sales can grow while the business still loses money, often because break-even is unknown. Without separating fixed costs like rent from variable costs like food, the target order count is guesswork.
This tool estimates how much each order contributes to fixed costs and how many orders you need to cover the month.
How it is calculated
Contribution per order = average order value × (1 - variable cost rate). Break-even orders = monthly fixed costs ÷ contribution. Break-even sales = break-even orders × average order value.
Put food cost and other percentage costs that rise with sales into the variable rate. Put rent, base payroll and similar monthly amounts into fixed costs.
How to read the result
Break-even orders is the approximate volume needed to finish the month at zero. Below it, fixed costs are not covered; above it, contribution starts turning into profit.
This tool is for information only. Talk to your advisor for budgeting, lending or accounting decisions.