Knowing how many you have to sell before you make a profit is not as simple as it looks. It definitely is not calculating how many of an item you have ordered, the total cost of that item, and then multiplying a quantity sold by the selling price. What has to be considered are the fixed and variable expenses associated with the business.

Your fixed expenses are those that are definitely going to occur each month. The amount may vary, as exampled by utilities, but the expense is definitely is going to occur. Your variable expenses are those that may or may not occur during the month. This calculator allows you to factor all of these components as you determine just what it does take to get to the point of breaking even.