Concept · article 02 of 14

Reading the
break-even chart.

The Runway card, in one sitting. The day your shop pays itself this month.

Ibrahim Ölmez Ibrahim ÖlmezFounder · nouz · 6 min read · Updated this week
Break-even = your monthly fixed costs. The horizontal line marks the gross margin you need this month to cover fixed costs. Cumulative gross margin above the line = month pays itself.

The break-even chart is the most operationally useful piece of the Statistics tab for month-end planning. It answers a single, clear question: are we on track to make rent this month, and if so, when?

01 What the chart shows

Two things on one chart:

  • The horizontal break-even line — your total monthly fixed-cost burden. Static for the month.
  • A rising cumulative line — your gross margin accumulating day by day from the 1st.

The day the rising line crosses the horizontal line is the day this month pays for itself. Every day after that is genuine EBIT.

02 Reading the line

  • Line crosses early in the month? Strong margin trajectory. The rest of the month is profit.
  • Line crosses around day 20? Normal for many small shops.
  • Line hasn't crossed by day 28? The month will close negative unless the last few days are big.
  • Line is flat? You're logging revenue but no gross margin — check your COGS or product prices.

03 What shifts the line

The break-even line moves up when you add or increase a fixed cost. It moves down when you end one. The rising margin line moves with your daily revenue and COGS performance. If the cross-over keeps slipping later in the month, look at whether your fixed costs grew or your margin per unit shrank.

04 How to use it

Three things the chart is good for:

  • Pace check mid-month. The slope of the rising line tells you whether the cross-over will happen on schedule.
  • Decision support. Thinking of adding a fixed cost? Mentally shift the horizontal line up and see if the rising line still meets it before month-end.
  • Stress test. A bad week dips the slope. The chart shows whether you have enough runway in the remaining days to recover.

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