BREAK-EVEN POINT
The revenue that covers your fixed costs and nothing more.
WHAT IT MEANS
Break-even is where contribution from services exactly matches fixed costs — rent, utilities, software, insurance, salaried wages.
THE FORMULA
Break-even services = fixed costs ÷ (average ticket × (1 − variable share))
WHY IT MATTERS
It turns a shop from 'busy or quiet' into 'above or below the line', which is the only view that supports decisions.
MEASURE IT
Barbershop Break-Even Calculator runs this calculation on your own numbers in under a minute.
RELATED DEFINITIONS
- Revenue Per ChairWhat one chair produces over a week, month or year.
- Booth RentA fixed fee for the use of a chair.
- Service RevenueMoney earned from services, before product and tips.
Part of Shop Ownership.