Discover the One Number Every Business Owner Needs to Know
You’re operating your business in the dark if you don’t know your breakeven number. It’s the most overlooked metric in entrepreneurship—and it could be the reason you’re stuck, stressed, or constantly playing catch-up with your money.
What Is a Breakeven Number?
Your breakeven number is the exact amount your business needs to bring in each month to cover your expenses, taxes, and personal income without going into debt, dipping into savings, or relying on hope as a strategy. Consider it your monthly baseline—your minimum to survive, sustain, and stay sane. Without it, you’re making money decisions based on feelings, not facts.
Why It Matters
Many business owners set income goals, such as “I want to make $ 10,000/month,” but they often have no idea if that number is too low, too high, or even aligned with their lifestyle goals.
Knowing your break-even number helps you:
- Set prices that actually support your life and business
- Know how many clients or sales you need to hit that number
- Feel in control of your finances instead of guessing
How to Calculate It (The Simple Way)
Start by figuring out these three components:
- Your Personal Life Costs
What do you need monthly to pay your bills, groceries, transportation, insurance, savings, etc.? Get honest. Don’t forget your real lifestyle goals—vacations, kids’ activities, paying off debt. - Your Business Expenses
Include software, contractors, office space, marketing, supplies—everything your business needs to operate well. - Taxes & Pay Yourself First
Add at least 30% to cover taxes, retirement, and that “Pay Yourself First” fund we discussed last month.
Now, add them all up. That’s your break-even number.
Let’s say:
- Personal expenses = $4,000/month
- Business expenses = $2,500/month
- Taxes/savings = $2,500/month
Your breakeven = $9,000/month
Make It Actionable
Once you know your breakeven, ask:
- What am I currently bringing in monthly?
- How many clients or sales do I need to reach my break-even point?
- Do my current prices support this number?
This turns your business into a math equation, not a mystery.
Pro Tip: Reverse-engineer your goals. If your breakeven is $9,000, do you want three clients at $3,000? Or nine clients at $1,000? Price with purpose.
Bonus: Use a Visual Tool
Create a simple spreadsheet or use a whiteboard to track your monthly revenue against your breakeven number. Visualizing it keeps you focused and motivated. You can even turn it into a game—how fast can I cross the line each month?
Final Thoughts
You must know your numbers if you want to feel empowered with your money. Your breakeven number is your financial flashlight—it shows you what’s really going on and what needs to shift.
Once you have clarity, you can confidently raise your rates, reduce unnecessary spending, or build new offers that align with your desired business and life.
Becca Heissel is a certified Jack Canfield Success Principles trainer and founder of Business Owners Advocate. She helps entrepreneurs transform their finances and mindset with simple systems, strategic clarity, and empowering tools. Connect with Becca at businessownersadvocate.com or on LinkedIn.
