6 is the example result. A positive unit contribution is required to cover fixed cost. Fractional units describe the mathematical threshold; whole-item sales need rounding upward.
A positive unit contribution is required to cover fixed cost.
Reading capacity and cost without hiding the workload
A positive unit contribution is required to cover fixed cost. Fractional units describe the mathematical threshold; whole-item sales need rounding upward. A staffing plan needs available hours and the portion of those hours that can serve the intended work. Paid time, productive time and billable time are separate definitions. Recruiting, training and supervision can change the cost of a role.
What the model includes
Result = (([Fixed costs]) ÷ ([Average monthly revenue per client] − [Variable cost per client])) Use one team and one reporting period. Headcount measures should distinguish people from full-time equivalents; hour-based models should state the expected schedule. A temporary absence and a permanent vacancy have different operating consequences. Review the result with the work queue and service commitment. A high utilisation percentage can signal limited room for urgent work, rather than a reason to add more demand immediately.
Example with the supplied inputs
Fixed costs: 15000; Average monthly revenue per client: 3000; Variable cost per client: 500. Result: 6. The values are illustrative.
Compare one changed input
Fixed costs changes from 15000 to 16500. The result becomes 6.6. All other inputs remain fixed.
Calculation rule
Result = (([Fixed costs]) ÷ ([Average monthly revenue per client] − [Variable cost per client]))
Inputs and output
| Input | Example value | Entry convention |
|---|---|---|
| Fixed costs | 15000 | Use fixed costs on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
| Average monthly revenue per client | 3000 | Use average monthly revenue per client on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
| Variable cost per client | 500 | Use variable cost per client on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
Output: 6 is the example result. A positive unit contribution is required to cover fixed cost. Fractional units describe the mathematical threshold; whole-item sales need rounding upward. Use the formula to distinguish a cash amount, count, percentage or ratio.
How to use the page
Collect the inputs
Gather Fixed costs, Average monthly revenue per client, Variable cost per client. Use one period and the units shown in the form.
Run the calculation
Enter the values and select the action. The calculation rule above explains how the inputs produce the result.
Compare a scenario
Change Fixed costs on its own, keeping the other inputs fixed. Read both results before changing another assumption.
Worked example
With the example inputs listed above, the result is 6.
Change Fixed costs from 15000 to 16500 while keeping every other value fixed. The result becomes 6.6. This comparison isolates that input; it does not forecast how other variables will respond.
Check the stated formula, units and limits before using the result in a decision.
Keep the displayed formula, input units and model scope with the result. Corrections or questions can be sent through the request section on this page.
Content updated: October 11, 2026