What’s Your Break-Even Point?
Profit starts after you cover your costs—do you know when that happens? Many business owners can tell you their prices and expenses—but they can’t tell you when they officially start making money. That’s what your break-even point is: the moment your revenue covers your costs. After that, it’s profit time.
To find it, take your fixed monthly expenses (like rent, salaries, and subscriptions) and divide by your average profit margin. QuickBooks users can run a Profit & Loss report, check their average gross profit percentage, and then do some basic math to see how much they need to sell to break even.
Knowing this number changes everything. You’ll set smarter sales goals, spend more confidently, and finally stop flying blind.
P.S. Need help with your business finances? We offer monthly accounting and bookkeeping services, clean-up projects for past years, QuickBooks training, and phone consultations to help you stay on track.
