Chartered Financial Analyst specializing in event-based and educational business models.
Determine how many tickets you must sell for your workshop to cover all costs. Enter any three variables—Total Fixed Costs, Price per Ticket, Variable Cost per Attendee, or Breakeven Attendees—to solve for the fourth.
Workshop Breakeven Calculator
Workshop Breakeven Formula
The breakeven formula for a workshop finds the number of attendees (Q) it must have for total ticket revenue to equal all fixed and variable costs.
Q = F / (P – V)
Solve for Total Fixed Costs (F):
F = Q * (P – V)
Solve for Price per Ticket (P):
P = (F / Q) + V
Solve for Variable Cost per Attendee (V):
V = P – (F / Q)
Variables Explained
- Total Fixed Costs (F): Your total, one-time overhead for the event (e.g., venue rental, speaker fees, marketing, insurance, AV equipment rental).
- Price per Ticket (P): Your average revenue per attendee (what the customer pays you).
- Variable Cost per Attendee (V): The direct costs per person (e.g., cost of lunch, printed materials, workbooks, transaction fees).
- Breakeven Attendees (Q): The total number of attendees you need to reach $0 in profit.
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What is a Workshop Breakeven Point?
A **Workshop Breakeven Point** is the number of attendees (or tickets sold) required to cover your total costs. This is the minimum number of sales needed to avoid losing money on the event.
**Fixed Costs (F)** are your “overhead.” These are the costs you pay once for the event, regardless of whether 10 or 100 people show up. This includes the venue rental, your speaker fees, your marketing budget, event insurance, and A/V equipment rental.
**Variable Costs (V)** are the costs tied *directly* to each attendee. This includes their lunch, the cost of their printed workbook, a welcome bag, and the credit card processing fee for their ticket.
The **Contribution Margin** (P – V) is the profit from a single ticket that goes toward paying off your large fixed costs. This calculator finds how many attendees are needed to cover your total overhead. Every attendee *after* this point generates your net profit.
How to Calculate Workshop Breakeven (Example)
Let’s calculate the breakeven point for a one-day professional workshop.
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Identify Total Fixed Costs (F):
The business has $2,000 in venue rental and speaker fees.
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Identify Price per Ticket (P):
The ticket price is set at $150.
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Identify Variable Cost (V):
Each attendee costs $30 in lunch and materials.
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Apply the Formula: Q = F / (P – V)
First, calculate the contribution margin per ticket: $150 (P) – $30 (V) = $120.
Next, divide the fixed costs by this margin:
Q = $2,000 / $120 = 16.67 -
Conclusion:
The workshop must sell 17 tickets (rounding up) to cover all costs and start making a profit.
Frequently Asked Questions (FAQ)
You must use an **average price per ticket (P)**. If you sell 10 tickets at $100 and 10 tickets at $150, your (P) is *not* $125. You must calculate (Total Revenue / Total Tickets) to find the true (P). In this case, `($1000 + $1500) / 20 = $125`.
Venue rental is a classic **Fixed Cost (F)**. You pay the rental fee whether 10 people come or 100 people come.
If you pay a speaker a flat fee (e.g., “$1,000 for the day”), it is a **Fixed Cost (F)**. If you pay them *per attendee* (which is rare), it would be a **Variable Cost (V)**.
This is a great way to price your event. Set your (F) (e.g., $2,000), (V) (e.g., $30), and a realistic attendee goal (Q) (e.g., 20). Solve for (P) to find your minimum price: `P = ($2,000 / 20) + $30 = $100 + $30 = $130`. You must charge at least $130 per ticket.