Months to Profitability Calculator

How it is calculated

The tool assumes monthly revenue grows by the same percentage every month while monthly costs stay flat, and finds when revenue first reaches costs:

months = ln(costs ÷ revenue) ÷ ln(1 + growth ÷ 100), rounded up to a whole month
revenue at break-even = revenue × (1 + growth ÷ 100)months

Revenue and costs are this month's figures, growth is a percentage per month. Revenue and costs must both be above zero. If revenue already equals or exceeds costs, the answer is 0 months (already profitable). If growth is zero or negative while revenue is below costs, the tool reports that break-even is not reachable at the current growth, since revenue never catches up. The result counts months from now, not from launch, and ignores costs that grow with the business, such as ad spend or hiring.

Common mistakes

• Entering growth as a yearly rate. The field is a monthly percentage, so 8 means 8% every month; an annual 8% is about 0.64% per month and would give around 81 months instead of 7.
• Typing growth as a decimal like 0.08. That is read as 0.08% per month, and the result runs to 639 months.
• Assuming costs stay frozen. The tool holds costs flat, but a business growing 8% a month usually adds costs too, so the real date of break-even is later.
• Entering annual revenue or annual costs next to a monthly growth rate. All three inputs must be monthly.
• Treating a high growth rate as sustainable. Even 8% a month compounds to more than double in a year, and the tool will happily project it for as long as you ask.