Break-even (revenue) = Fixed costs ÷ Contribution margin %
Break-even is the revenue level at which a company covers all its costs, fixed and variable, and the result is zero. Below it the company loses money; above it, every sale generates profit. It is also called the breakeven point.
How it is calculated
Break-even (in revenue) = Fixed costs ÷ Contribution margin %. In units: Fixed costs ÷ (Unit price − Unit variable cost). In cash terms, the same logic applies to fixed payments and net receipts: the month in which net burn reaches zero.
Example with numbers
Monthly fixed costs 200,000; contribution margin 50%. Break-even = 200,000 ÷ 0.50 = 400,000 of revenue a month. With current revenue of 320,000 the company loses 40,000 a month; growing 4% monthly, it reaches break-even in about 6 months.
How Fibady does it
Contribution margin and fixed costs come from the consolidated P&L with the group's level structure, and the forecast by area projects the month in which revenue crosses break-even. The AI agent explains which lines bring it closer or push it away; the calculation is done by the model, not the agent.