Agency Break-Even Calculator
Work out the monthly transactions an agency needs to cover its fixed and variable costs, and what each deal contributes to profit.
💼 Are you a real estate agent or broker? Send this calculator to your buyers on your own branded listing page — every enquiry comes straight to your WhatsApp. Create free agent page →An agency has fixed costs that arrive whether or not anything completes — premises, salaries, software, portal subscriptions — and variable costs that arrive per deal. Break-even is the number of transactions where the contribution from each one finally covers the fixed base.
It is the single most useful number for a small agency, because everything below it is a loss regardless of how busy the month felt.
The calculation
Contribution per deal = average fee − variable cost per deal. Break-even = fixed monthly costs ÷ contribution. To include a profit target, add it to the fixed costs before dividing.
Worked example
With 12,000 of fixed monthly costs, an average fee of 4,500 and 900 of variable cost per deal, each transaction contributes 3,600 — an 80% contribution margin. Break-even is 3.3 deals a month, and reaching an 8,000 monthly profit needs 5.6.
Watch the fee, not the volume
Because fixed costs are covered by contribution, a small change in average fee moves break-even sharply. Raising the average fee from 4,500 to 5,000 lifts contribution to 4,100 and drops break-even to 2.9 deals — the same result as winning half a deal more every month, without any extra work.
Turn a calculation into an enquiry
Buyers who run these numbers are ready to talk. Give every listing its own page with your photo, phone and WhatsApp on it — leads land straight on your phone.
Create your free property pageFrequently asked questions
What counts as a variable cost?
Anything incurred only because a specific instruction exists: photography, floor plans, portal listing upgrades, printed particulars, viewing staff time and any referral fee. Salaries and premises are fixed and belong in the other line.
Should I include my own salary in fixed costs?
Yes if you need to draw it every month regardless of performance. Leaving it out produces a break-even that looks achievable while the business quietly fails to pay you.
How do I lower break-even?
Raise the average fee, cut variable cost per deal, or reduce fixed costs. The first usually has the largest effect for the least disruption, because it lifts contribution on every deal you already do.