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Find your break-even revenue, the exact date you start making money and the safety margin that protects you from a downturn.
Find the revenue you must reach to cover your costs, the date you turn profitable and your margin of safety.
Costs that move with activity: purchases, raw materials, commissions
Costs independent of activity: rent, salaries, insurance
The fixed/variable split is a management convention; mixed costs must be allocated. Activity is assumed regular across the year.
The break-even point is the revenue at which your contribution margin (revenue minus variable costs) exactly covers your fixed costs: above it you make a profit, below it a loss. Expressed in days, it becomes the date in the year when your business starts earning money. The closer that date, the more resilient your model.
A clear break-even point lets you:
Hayot Expertise builds the management-control tools (break-even, contribution margin, dashboards) that turn your accounting into real-time decisions.