Break-even calculator for your course
An in-person session or an online course: enter your price and your costs, and see how many trainees or sales you need to break even, and what you earn with the number you expect.
- Fixed costs
- $3,300
- Margin per trainee
- $1,120
With 8 trainees: profit of $5,660
What is the break-even point?
The break-even point is the level of sales at which revenue covers all costs: no profit, no loss. Below it, each session or each month loses money; above it, each extra sale adds its margin to your profit.
On a chart, it is where the revenue line crosses the total cost line. Move the price: the lower it is, the further the crossing point moves to the right.
How to calculate the break-even point, step by step
A one-day in-person session sold $1,200 per trainee, the calculator’s default example.
- Step 1
Add up the fixed costs
Trainer, room, preparation: $2,400 + $600 + $300 = $3,300. - Step 2
Work out the margin per trainee
Price minus variable cost: $1,200 − $80 = $1,120. - Step 3
Divide
$3,300 / $1,120 = 2.95, rounded up to 3 trainees. - Step 4
Turn it into revenue
Contribution margin ratio: $1,120 / $1,200 = 93%. Break-even revenue: $3,300 / 0.93 = $3,536, or $3,600 with 3 whole trainees.
Fixed costs and variable costs
The whole calculation rests on one split. A fixed cost stays the same whatever the number of trainees or sales: the trainer paid by the day, the room, the course production. A variable cost grows with each unit: lunches, materials, payment fees.
Sort the costs on the right: the answer is not always the one you expect.
- The trainer, paid by the day
- Trainees’ lunches
- Room rental
- Online payment fees
- The platform subscription
- A certification exam
The break-even month
Over a year, the break-even point becomes a date: the month when the margin accumulated since January covers the year’s fixed costs. A quiet summer pushes it back; a second session each month brings it forward.
Break-even reached in September: from then on, each session makes a profit.
In-person session or online course
A session pays its trainer and room each time it runs: its break-even point is counted in trainees, session by session. An online course pays its production once: its break-even point is counted in sales, over the whole period.
Before or after tax?
Use prices before sales tax or VAT: the tax you collect is not yours. If you do not charge tax, the price before tax is simply the price your customer pays.
Lower your fixed costs, lower your break-even point
With Learnybox, you sell your course online: a sales page, one-off or instalment payments, coupons, and access that opens after payment. No room or trainer to pay for each new student.
Frequently asked questions
Another question? Write to us.
What is the break-even point formula?
In units: fixed costs divided by the contribution margin of one unit, the price minus the variable cost. In revenue: fixed costs divided by the contribution margin ratio, the margin divided by the price.
How do you calculate the break-even point in dollars?
Divide your fixed costs by your contribution margin ratio. With $3,300 of fixed costs and a margin of 93% of the price, break-even is $3,300 / 0.93, about $3,536 in revenue.
What is the difference between break-even point and break-even date?
The break-even point is an amount or a number of sales; the break-even date is a moment in time. The first tells you how much to sell, the second when you will have sold enough.
Is 100% profit breaking even?
No. Breaking even means zero profit: revenue exactly covers fixed and variable costs. Every sale beyond that point adds its contribution margin to your profit.
How do I calculate break-even in Excel?
Put fixed costs, price and variable cost in three cells, then use =ROUNDUP(fixed/(price-variable),0) for the number of units. The calculator does the same and draws the profit for each number of sales.
Which costs count for an online course?
Fixed: production (filming, editing), tools over the period, advertising. Variable: payment fees and affiliate commissions, a percentage of each sale.
What if my break-even point is too high?
Work the three levers: price, fixed costs and how full each session is. A half-full public session costs almost as much as a full one.
Is the calculator free?
Yes. The result shows with no account; the PDF analysis asks for your email once.
Sell your courses online
Sales pages, payments and courses on one platform. Free to start.