Break-even sales calculator for Kenya

Include monthly costs such as rent, salaries, internet, marketing, software, licences, and storage. For each sale, include stock or materials, packaging, delivery you pay, commissions, and payment fees.

Usually no. Use your selling price before VAT because VAT collected is not business income available to cover costs or profit.

Fixed costs are monthly overheads such as rent, salaries, marketing, internet, and software that stay the same whatever you sell. Variable costs change with each sale and include stock, materials, packaging, delivery you pay, commissions, and payment fees. Break-even divides your total fixed costs by the amount each sale leaves after its variable costs.

The calculator deducts the payment fee you enter, up to 99% of the selling price, from each sale before working out the contribution. A bigger fee leaves less per sale, so you need more sales to cover your fixed costs. On a KSh 1,500 sale with a 0.5% fee, KSh 7.50 is deducted before contribution is calculated.

The calculator shows a warning instead of a break-even number, because every sale loses money and no sales volume can fix it. Raise your selling price, reduce the direct cost, or lower the payment fee until the amount left from each sale is positive before you set a sales target.

The calculator divides your monthly break-even sales by the selling days you enter, between 1 and 31. With KSh 85,000 in monthly fixed costs and KSh 792.50 left from each sale, you need 108 sales a month, which is about 4 sales a day across 26 selling days.

Yes. It is one of LinkDuka's free business tools and needs no sign-up or download. Enter your monthly fixed costs, average selling price, direct cost, payment fee, planned sales, and selling days, and the results update instantly on any phone or computer browser.

Start with your average sale price and average direct cost instead of your most expensive or cheapest item, because the sales mix determines how much each typical sale leaves. Recalculate whenever your mix, prices, or costs change so the break-even target reflects what you actually sell.

Recalculate whenever your fixed costs, prices, or costs change, such as after a rent increase, a new salary, a supplier price rise, or a promotion. A monthly check is a good routine for most Kenyan small businesses, since costs such as marketing, electricity, and payment fees vary from month to month.