Break-Even Point

Definition

The volume of business at which total contribution exactly covers fixed costs — zero profit, zero loss.

Formula

Break-even units = Fixed costs / Contribution per unit

Worked Example

Fixed monthly costs $45,000, contribution per customer $29.34:

Break-even = $45,000 / $29.34 = 1,534 customers

At 2,000 customers: profit = (2,000 - 1,534) x $29.34 = $13,672/month

Interpretation & Pitfalls

Every unit beyond break-even contributes its full per-unit contribution to profit. Recompute break-even whenever fixed costs or pricing change.

In TupicFinance

Break-even per service falls out of the unit-economics data: fixed allocations plus live contribution per customer.