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Use fixed overhead and contribution margin from one monthly period.
Your current business
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Break-even Total Revenue Calculator
What must this month sell before the business keeps a rand?
Put fixed overhead, contribution margin before advertising, advertising share and target profit into the same monthly model. See the break-even sales line and the revenue required for your target.
Show me how this works — a quick guided example
Change one lever.
Subtract advertising as a share of revenue from the pre-ad margin.
One changed scenario
See what moves.
Compare break-even revenue with the sales required for your operating-profit target.
A comparison you can investigate
Your numbers. Your next question.
The example is already working. Replace its figures with yours, from the same period.
The sales line your costs need you to cross.
Compare the sales needed to cover overhead with the sales needed for your profit target. Margin and advertising rates stay fixed.
Margin remaining after advertising
30.0%Contribution margin before advertising less advertising as a share of revenue.
Monthly break-even revenue
R 166 667Revenue needed to cover the entered fixed costs.
Revenue for your profit target
R 250 000Fixed overhead plus target operating profit before tax, divided by the remaining contribution rate.
Advertising at break-even revenue
R 16 667Break-even revenue multiplied by your advertising percentage.
Advertising at target revenue
R 25 000Target revenue multiplied by your advertising percentage.
The comparison uses your inputs and fixed assumptions. It is a planning example, not a prediction.
What is getting in the way?
Pick the problem you recognise. Start with a change you can actually measure.
- Reconcile monthly fixed overhead with contribution after product, order and advertising costs. Keep each cost in one category.
- If the remaining margin is zero or negative, repair pricing, order costs or the advertising share before chasing a higher sales target.
The maths behind your result
Remaining contribution rate = (contribution margin before ads − advertising share of revenue) ÷ 100.
Break-even revenue = fixed costs ÷ remaining rate. Target revenue = (fixed costs + target operating profit before tax) ÷ remaining rate, only for a positive remaining rate.
Use one monthly period, currency and tax basis. Product and order costs belong in the pre-ad contribution margin; do not count them again in fixed overhead. The model holds product mix and cost rates fixed.
The calculator found the gap. Let’s look at your business.
Want help turning these numbers into an action plan? Show us the business and the obstacle. We’ll use your calculation as the starting point.