Break-even calculator for shops
Enter your fixed monthly costs and average margin, and see how much you need to sell each day to cover them.
Break-even
Formula: Daily sales needed = (monthly fixed costs ÷ margin) ÷ working days
How to use it
Rent, salaries, electricity, internet and subscriptions: everything you pay each month whether you sell or not.
The share of each dinar you keep after the cost of the goods, like 25%.
How many days a month the shop is open, so you get a daily break-even figure.
Break-even is the level of sales that covers all your shop's costs, with no profit and no loss. Say your rent is 600 JOD, salaries are 700 JOD, and electricity and internet come to 200 JOD. Your fixed costs are 1,500 JOD a month. If your average margin is 25%, every dinar you sell leaves a quarter of a dinar to put toward those costs, and the rest pays for the goods.
So you need monthly sales of 1,500 ÷ 0.25 = 6,000 JOD. If the shop opens 30 days a month, your daily break-even is 200 JOD. Every dinar you sell above 200 JOD a day leaves you 25% as real profit. Open only 26 days and the daily figure rises to about 230.769 JOD, so enter the days you actually open, not the days in the month.
In Ghalleh you can set your break-even as a daily sales target, watch progress toward it, and get a notification when you reach it.
Common questions
What's the difference between fixed and variable costs?
Fixed costs stay the same whatever you sell, like rent and salaries. Variable costs grow with sales, like the cost of goods and bags. The calculator only needs fixed costs, because variable costs are already inside your margin.
Should I include the cost of stock in fixed costs?
No. The cost of goods is already taken out through your margin. Add it to fixed costs and you count it twice, which makes your break-even look higher than it is.
My margin is different for every product. What do I enter?
Use your real average margin over a full month: total profit divided by total sales. If you made 1,800 JOD profit on 7,200 JOD of sales, your average margin is 25%.
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