What is break-even?
The number of cups you need to sell just to cover your costs. After this point, every sale is profit!
Calculator
Enter your values
Lemons, sugar, ice, cup
Signs, table rental, permits
Analysis
Interpretation of the current calculator output
Enter values to see detailed analysis and insights.
How to Use
Step-by-step instructions
- 1Enter how many cups you expect to sell
- 2Set your selling price per cup
- 3Estimate cost of ingredients per cup (lemons, sugar, ice)
- 4Add any fixed daily costs (table rental, signs)
- 5See if you will make a profit!
Profit Formula
Profit is what's left after paying for ingredients (variable costs) and the stand/signs (fixed costs).
Profit = (Price × Cups Sold) - (Fixed Costs + (Variable Cost × Cups Sold))Variables:
PriceSelling price per cupVariable CostCost of lemons, sugar, cups per unitFixed CostsOne-time daily costs like rent or signsExample
Summer Stand
Inputs:
Sales:50 cups
Price:$2.00
Cost:$0.50/cup
Fixed:$10.00 (signs)
Steps:
- 1.Revenue = 50 × $2.00 = $100.00
- 2.Variable Costs = 50 × $0.50 = $25.00
- 3.Total Costs = $25.00 + $10.00 = $35.00
- 4.Profit = $100.00 - $35.00 = $65.00
Result:
$65.00 Profit
Frequently Asked Questions
How can I make more money?
You can raise the price (but might sell fewer cups), lower ingredient costs (buy in bulk), or advertise to sell more cups.
Why calculate this?
It teaches the core concepts of any business: Revenue, Expenses, Profit, and Margin.