Every small business owner in Michigan wants to know one crucial number: your break-even point. This is the point where your sales cover all your costs—meaning you’re no longer losing money and every sale beyond that becomes profit.

Whether you’re running a consulting firm in Detroit, a retail shop in Grand Rapids, or a family-owned service business in Lansing, understanding your break-even point can help you plan smarter, grow faster, and stay competitive in today’s market.

A Simple Break-Even Example for Service Businesses

Let’s break it down:

• Fixed Costs (rent, software, insurance): $4,000 per month

• Price Per Session: $200

• Variable Costs (materials, travel, admin support): $50 per session

Formula:

Break-Even Point = Fixed Costs ÷ (Sales Price – Variable Costs)

4,000 ÷ (200 – 50) = 26.6 sessions

That means you need to deliver 27 sessions per month to break even. Every session after that? Pure profit.

Why Knowing Your Break-Even Point Matters

When you calculate your break-even point, you gain:

✅ Confident Pricing – Know your numbers and charge rates that truly cover costs.
✅ Realistic Sales Goals – Set targets that align with your actual expenses.
✅ Growth Clarity – Decide when it’s time to expand, hire employees, or invest in new tools.

For Michigan entrepreneurs, this insight can mean the difference between struggling to stay afloat and confidently scaling your business.

Partner with a Local Expert for Break-Even Success

Here’s the truth: break-even numbers are only as good as the bookkeeping and tax records behind them. That’s why so many business owners in Michigan turn to Dynamite Tax & Financial Service.

As your trusted Michigan Accountant, Michigan Tax Preparer, and provider of Michigan CFO Services, we help small businesses:

• Keep financial records accurate and tax-ready

• Identify hidden costs that impact profitability

• Build strategies that improve cash flow and growth potential

When you work with us, you get more than just numbers—you get a partner who understands Michigan businesses and knows how to help them thrive.

Ready to find out your true break-even point? Schedule a call with Dynamite Tax & Financial Service today and let’s make your numbers work for you!