Find out exactly how many services you need to perform to cover your costs and start making a profit. This calculator will help you understand when your salon becomes profitable.
What is Break-Even Analysis? It's a calculation that shows you the point where your total revenue equals your total costs—meaning you're neither making a profit nor a loss.
Fixed costs are expenses that don't change regardless of how many clients you serve.
Add the services you offer, their prices, and the variable costs associated with each service.
This helps us understand how many services you can realistically perform per month.
This shows how each service contributes to your profitability.
| Service | Price (R) | Variable Cost (R) | Profit Margin | Contribution to Fixed Costs (R) |
|---|
Based on your current capacity and booking efficiency, you will reach your break-even point after 14 working days each month.
You're currently using 70% of your maximum capacity. Increasing this to 80% would reduce your break-even point by 5 services.
Your highest profit margin service is Gel Manicure. Increasing this service by 10% in your mix would reduce your break-even point by 3 services.
For every R1,000 reduction in monthly fixed costs, your break-even point would decrease by approximately 4 services.
