Protecting Your Cash Flow
Knowing your daily or weekly break-even target helps you monitor commercial health before month-end rent and payroll deadlines arrive.
Business tools
Find out how many units or services you must sell each month to cover your fixed rent, salaries, and operating expenses.
Fundamental cost structure metrics for Kenyan startups and retail shops.
| Income Band / Category | Rate / Limit | Notes |
|---|---|---|
| Fixed Overheads | Base Cost | Rent, permanent staff, licenses, utilities, insurance |
| Variable Costs | Per Unit | Raw materials, direct stock, delivery, commission |
| Contribution Margin | Price - Variable | Revenue remaining per unit to pay fixed overheads |
| Break-Even Point | Fixed / Margin | Minimum monthly sales required to avoid making a loss |
Knowing your daily or weekly break-even target helps you monitor commercial health before month-end rent and payroll deadlines arrive.
If your break-even volume is too high for your market capacity, consider increasing price per unit, renegotiating supplier costs, or trimming fixed overhead expenses.
Quick Answers
The break-even point is the exact sales volume (in units or total revenue) where your total revenue equals total business costs (fixed overheads + variable production costs), resulting in zero profit and zero loss.
Fixed costs are expenses you must pay regardless of sales volume (shop/office rent, employee base salaries, internet, county business permits). Variable costs change directly with output (raw materials, packaging, inventory purchase, MPesa transaction fees, delivery).
Add your desired monthly profit to your fixed costs, then divide by the contribution margin per unit (Selling Price - Variable Cost).
Calculators are for planning and estimation only. Verify final tax, payroll, loan, investment or property figures with the relevant institution or adviser.