Do You Know Your Monthly Break-Even Point?
If you’re a small business owner in Northwest Arkansas—especially in service-based industries like consulting, health and wellness, home services, or creative work—understanding your monthly break-even point is one of the most important financial metrics you can know.
Yet, most business owners don’t track it. Why? Because it feels complicated, confusing, or irrelevant when money is flowing in… until it’s not.
Knowing your break-even point helps you make smarter decisions, plan for slower months, and build real profitability—not just revenue.
What Is a Break-Even Point?
Your break-even point is the minimum amount of income your business must generate each month to cover all your expenses.
This includes:
Rent or office space
Software subscriptions
Payroll or contractor costs
Insurance
Taxes
Marketing and advertising
Owner pay
Once you hit that number, every dollar beyond it is profit. But if you’re not tracking this clearly, you may be operating in the red—and not even know it.
Why Break-Even Tracking Matters for Service-Based Businesses
Service-based businesses often have:
Inconsistent revenue
Variable contractor or supply costs
Seasonality
Delayed client payments
That’s why break-even tracking isn't optional—it’s essential. When you know your minimum monthly revenue target, you can:
Set accurate pricing
Build better marketing strategies
Plan for cash flow gaps
Avoid overspending on growth too soon
How to Calculate Your Monthly Break-Even Point
Here’s a basic formula:
Total Fixed Monthly Costs ÷ Average Profit Margin = Break-Even Revenue
Let’s say your business has:
$5,000 in fixed expenses
A profit margin of 50%
Your break-even would be:
$5,000 ÷ 0.5 = $10,000
That means you must bring in $10,000 in revenue to break even.
Want a custom breakdown for your business? That’s what we do at DBR Bookkeeping.
How DBR Bookkeeping Helps You Track and Reach Your Break-Even
We help businesses in Northwest Arkansas and beyond:
Clean up and organize their books
Set up clear financial reporting in QuickBooks Online
Identify monthly expenses and revenue benchmarks
Set goals to go beyond “just enough” and build real profit
Frequently Asked Questions (FAQ)
Why is knowing my break-even point so important?
It gives you clarity on the minimum revenue you need to stay afloat—and grow with confidence.
Can QuickBooks Online help calculate my break-even point?
Yes. When set up correctly, QBO allows you to track revenue, expenses, and profit margins needed for this calculation.
What happens if I never calculate my break-even?
You may be underpricing your services or overestimating your financial stability—two common reasons small businesses fail.
Do I need a bookkeeper to help with this?
If numbers aren’t your thing (or you want to focus on growth), a bookkeeper like DBR Bookkeeping can guide you through it and create systems that make this process easy.
Let’s Find Your Break-Even Point—Together
If you’ve never tracked your break-even point—or if you’re guessing each month—this is your sign to fix it now.
📅 Book a call with Dr. Bryan Raya today and let’s run the numbers together. We’ll help you build systems in QuickBooks Online that keep you on track, profitable, and stress-free.
Let’s start Doing Business Right.
#BreakEvenPoint #BookkeepingTips #QuickBooksOnline #NorthwestArkansasBusiness #ServiceBasedBusiness #SmallBusinessProfitability #DBRBookkeeping #DoingBusinessRight