Break-Even Price

The break-even price is the price at which, for a given sales volume, your revenue exactly covers your total costs. Sell at this price and you make neither profit nor loss; every euro above it is margin.

The math

The base formula is simple:

Break-even price = variable cost per customer + (fixed costs per month / customers per month)

An example: 15 euros of variable cost per customer, 6,000 euros of monthly fixed costs, and 100 paying customers yield a break-even price of 75 euros per customer per month.

The leverage is in the volume

The formula shows why the assumed volume is the critical input: with 50 instead of 100 customers, the example's break-even price jumps to 135 euros. Always run several volume scenarios (cautious, realistic, optimistic) before relying on one number. A break-even price based on an optimistic volume is a dangerously soft floor.

The break-even price is a calculation, not a price recommendation: it marks the lower end of your pricing corridor. The free break-even calculator computes it right in your browser, including volume scenarios. In the 9-step process, it is calculated in step 5 (financial planning) with a sensitivity analysis.