Production

Studio Break-Even Calculator

Calculate how many pieces you need to sell each month to cover all studio costs.

Updated

Enter your monthly studio costs. Leave any field at 0 if it does not apply to you.

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Results

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Enter your measurements above and click Calculate.

Understanding Break-Even Analysis

Break-even is the point at which your revenue exactly covers your costs — zero profit, zero loss. For a pottery studio, break-even analysis answers the essential question: "How many pieces do I need to sell each month just to keep the studio running?" Anything above that is profit.

Fixed vs. Variable Costs

Fixed Costs

Paid regardless of how much you produce:

  • Rent or mortgage
  • Utilities (base amount)
  • Equipment depreciation
  • Website and marketing subscriptions

Variable Costs

Scale with production volume:

  • Clay and glaze materials
  • Firing costs (electricity/gas)
  • Packaging
  • Sales commissions

The Contribution Margin

The contribution margin is your sale price minus the per-piece variable cost. Each piece sold contributes this amount toward covering your fixed costs. Once fixed costs are covered, every additional piece contributes directly to profit. Increasing your contribution margin (by raising prices or reducing per-piece material costs) directly reduces your break-even point.

Frequently Asked Questions

What is a contribution margin? expand_more
Contribution margin is the selling price minus variable costs per piece (materials and firing). Each piece sold contributes this amount toward covering your fixed costs. Once fixed costs are covered, every piece sold becomes profit.
Should I include my own salary as a cost? expand_more
Yes — your time is a real cost. Include your desired hourly wage in the labor/instructor rate fields. If the break-even number seems impossibly high, the math is telling you to either reduce fixed costs, increase prices, or increase production volume.