Find the revenue you need to cover your fixed costs.
Break-even calculator
Plug in your numbers - it updates as you type.
The level of revenue or billable work at which an agency covers all its costs - below it you lose money, above it you profit.
For example, an agency with $80,000 a month in salaries and overhead needs to bill at least that to break even. Knowing the number turns a vague worry about a slow month into a clear target for sales and utilisation.
Why it matters to agencies: the break-even point is the line every agency needs to clear each month before it makes a penny of profit. Knowing it - and how many billable hours or how much revenue it implies - turns capacity planning and sales targets from guesswork into a concrete goal.
Break-even revenue = fixed costs ÷ gross margin %
Roughly, the revenue needed to cover salaries and overhead.
Break-even revenue = fixed costs ÷ gross margin %. Knowing it tells you the minimum billings each month before you make a penny of profit.
The level of revenue or billable work at which an agency covers all its costs - below it you lose money, above it you profit.
Divide your fixed costs - salaries and overhead - by your gross margin percentage to get the revenue needed to cover them.
It is the monthly target you must clear before making any profit, anchoring sales goals, pricing and capacity planning.
Higher utilisation means more billable revenue from the same team, so it lowers the revenue you need to break even.
Forge builds your metrics dashboard and looks after it - tracking break-even point live for your whole agency, built around the tools you already use. No spreadsheets, no code on your side.