What is the break-even analysis calculator?
Break-even is the MRR at which your gross profit equals your fixed costs. Below break-even you're burning cash; above it, you're contributing.
Break-even MRR = Fixed Costs ÷ Gross Margin.
Free Calculator
Break-even Analysis Calculator
When does your company become profitable on a monthly basis? Given current MRR, growth, fixed costs, and gross margin — model the path to break-even.
Months to break-even
16 mo
MRR needed to break-even
$267K
MRR gap from break-even
$187K
What break-even means hereBreak-even = revenue at which your gross profit (MRR × gross margin) equals your fixed costs. Once you cross it, every additional dollar of MRR contributes to net cash positive.
Time to break-even guide
- ≤ 12 monthsHealthy / efficient
- 12–24 monthsStandard
- 24–36 monthsAggressive
- > 36 monthsHeavy capital required
Why this matters for founders & operators
"Default alive" companies (Paul Graham's term) reach break-even before running out of cash. "Default dead" companies don't, and need to either raise more or cut costs.
Knowing your break-even point — and the time to reach it given current growth — is the cleanest single number for whether your company is on a sustainable trajectory.
How to use this calculator
- 1Use real fixed costs
Salaries + tools + office + all monthly fixed expenses. Don't include COGS — that flows through gross margin separately.
- 2Use realistic growth rate
Last 3-6 months' actual MoM growth. Aspirational growth rates make the calc misleading.
- 3Run worst-case scenario
Drop growth rate to 0 and see if you'd ever break even with current cost structure. If not, the cost structure is too heavy.
FAQ
Is break-even the same as profitability?+
Close but not exact. Break-even ignores capex, taxes, and working capital. Cash-flow break-even is the more rigorous metric.
Should every startup target break-even?+
Eventually yes. Some startups optimize for growth above break-even (high-growth SaaS); others target break-even quickly to avoid further dilution. Both are valid.
What about variable costs that scale with revenue?+
Those should be in your COGS / gross margin. Fixed costs are the ones that don't scale. Get the categorization right and the break-even math holds.