Break-even sales = fixed costs ÷ gross margin %. Example: $30,000 fixed costs ÷ 40% margin = $75,000 in monthly sales. Add any new funding payment to fixed costs.
Check my optionsFinancial management
Your break-even point is the sales level at which revenue exactly covers all costs. Knowing it tells you how much a new funding payment raises the bar, and whether the funded activity can clear it.
Amount to request
$85,000.00
Funding range$25K to $5M
*Sample amounts shown. Your actual offer depends on your business and is reviewed before approval.
A human reads the file, not just an algorithm score.
Your file goes to funders that fit it, so offers can be compared.
Existing balances of $100,000 or less can be bought out.
Advances, lines of credit and second-position options in one place.
Fast decisions. Applying takes about 5 minutes.
A short application. A soft credit pull to start.
We review revenue, time in business and bank activity, not just a credit score.
You see the amount, the schedule and the full repayment amount before you sign.
Funding in as little as 24 hours for qualified businesses.
The formula needs two inputs. Fixed costs are expenses that do not change with sales volume over the month: rent, salaries, insurance, software, loan or advance payments. Contribution margin is the share of each sales dollar left after variable costs, such as materials, merchandise, card processing fees and commissions. Break-even revenue equals fixed costs divided by the contribution margin percentage.
Example: a shop with $18,000 in monthly fixed costs and a 45% contribution margin breaks even at $18,000 ÷ 0.45 = $40,000 in monthly sales. Every dollar of sales above $40,000 produces 45 cents of profit. Below it, the business loses money.
A new funding payment is a fixed cost. If that shop adds a payment of $4,500 a month, fixed costs rise to $22,500 and break-even rises to $50,000 in sales. The question before borrowing is whether the funded activity, more inventory, a new hire, a second chair, will lift sales by at least $10,000 a month, or lift margin enough to compensate. If not, the business is worse off even if the funding was approved easily.
Run the calculation for your slowest month too. A business that breaks even comfortably in its average month might fall below in its weakest, and that is where payments become hard. MFE considers credit from 500, but sizing the request so the new break-even remains below your slow-month sales is what keeps funding helpful.
Here is an offer whose payment you would add to fixed costs in a break-even calculation. Illustrative numbers.
| Funding for the project | $50,000 |
| Total payback (factor 1.25) | $62,500 |
| Term | ~36 weeks |
| Payment per week | $1,736 |
| Monthly payment the project must cover | $7,517 |
| Your estimate of added monthly profit | $8,000 |
| Verdict | Pays back within the term |
Illustrative. Replace the estimate with your own numbers before applying.
| Fixed costs | Rent, salaries, insurance, funding payments |
| Variable costs | Materials, merchandise, fees, commissions |
| Contribution margin % | (Sales - variable costs) / sales |
| Break-even revenue | Fixed costs / contribution margin % |
| New payment effect | Raises break-even revenue |
Good fit:
Probably not yet:
Divide monthly fixed costs by your contribution margin percentage.
The share of each sales dollar left after variable costs.
Yes, for break-even purposes it is a fixed monthly outflow.
The payment divided by your contribution margin percentage.
Yes, that is where payments become difficult.
Yes, a higher margin lowers the sales needed to cover fixed costs.
Example uses for illustration only.
Before you apply:
One secure application. A soft credit pull to start. No obligation to accept an offer.
Apply for Funding