Placement Break-Even Calculator

Coverage is a volume target with a capacity test

Break-even whole units = route and fixed operating costs / contribution per dispensed unit, rounded upward. The default packaged example has $342.33 route/fixed costs and about $1.309673 contribution per item, requiring 262 whole items over 28 days. Its maximum saleable capacity is 1,128.96 expected item equivalents.

If contribution is zero or negative while fixed costs remain, no finite operating break-even exists. If required units exceed capacity, changing demand alone cannot solve the problem. At zero fixed cost and negative contribution, only zero units breaks even; at zero contribution and zero fixed cost, every feasible volume breaks even.

This is operating coverage before unpaid owner allowance, depreciation, interest, income tax and loan principal. It does not establish investment payback or distributable cash.

What these results mean

Defaults are editable illustrations, not U.S. averages. The operating tools use a 28-day period by default, net prices before collected sales tax and an identical machine/location cohort. Simple view and Detailed P&L read the same ledger. Changing a view does not change the inputs.

Revenue includes only dispensed product. Demand first loses the unavailable selling-time share, then actual sales are capped by stock, resources and machine throughput. Unmet demand is shown separately. In steady state, consumed packaged stock equals sold items divided by saleable yield. Remaining stock is not revenue or an additional expense.

Route visits include the opening load, use evenly spaced service cycles and visit every machine each round. Available route hours cap the number of complete rounds. Loading, driving, refill and service minutes are included; no route optimization or calendar appointment booking is performed.

Contribution deducts consumed stock/resources, percentage commission and processing. Operating profit also deducts paid route labor, vehicle operation, fixed location fees, maintenance and overhead. It excludes depreciation, interest, debt principal, income tax and distributions. Unpaid owner work is shown separately; do not enter paid hours again as unpaid work. Annualization is steady state, not a seasonal cash forecast.

Continue with a practical guide

• How does a location commission change machine contribution?

  Use a commission sensitivity worksheet and a fixed-fee crossover to compare proposed location terms.