More sales do not always mean you reached break-even
Revenue is the top line. Contribution is what each unit has left to cover the fixed costs underneath it.
2 min read · Open guideSmall business
Make the price assumptions visible.
Estimate break-even units and reverse a fee calculation before planning a price.
A useful place to start
Choose the tool for the specific task you are planning.
Check the units and replace example figures with relevant inputs.
Review the assumptions, supporting values and linked guide before acting.
THE TOOLKIT
2 tools · Local processingChoose the right tool for the job.
Connect the steps.
A 3% fee on the final charge is not reversed by simply adding 3% to the desired net. Use the actual fee basis and verify settlement rules.
GO A LITTLE DEEPER
All guides ↗Guides for the next step.
Know the limits.
Generic arithmetic only. Actual tax treatment, platform fees, rounding rules and business circumstances differ.
How we explain methods and sources →