SBLA Commercial location analysis · Switzerland

Break-even point

The turnover at which the business stops losing money: fixed costs divided by the contribution margin ratio.

Computed by dividing total fixed costs by the contribution margin ratio, it is the most important number in a business plan — and it is computed before visiting any premises: it sets the maximum bearable rent, and therefore the category of location within reach.

It only really speaks once translated into operating units: customers per day, covers per service, tickets per opening hour. A break-even point that assumes more customers than the street brings past shows up immediately in that translation — and not in the spreadsheet.

Related notions

Where this notion is used

The figures, canton by canton

Population, income, benchmark commercial rent, taxation and flows — official data, refreshed at every import.

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