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Break-even analysis is a core business competency for estheticians operating solo or managing a studio. The break-even point (units) equals Fixed Costs ÷ Contribution Margin per Unit. Fixed costs are expenses that do not change with service volume (e.g., rent, utilities base, insurance). Contribution margin per facial equals selling price minus variable cost: $80 – $20 = $60. Break-even units = $4,000 ÷ $60 ≈ 66.67, which rounds up to 67 services. At 67 facials, total contribution ($60 × 67 = $4,020) slightly exceeds fixed costs, covering overhead but yielding essentially zero profit before taxes. Knowing this threshold helps you set realistic booking targets, evaluate promotions, and manage pricing. For instance, if you discount services, the contribution margin shrinks, raising the break-even volume. Conversely, adding retail with healthy margins or upgrading to higher-value services can reduce the number of services needed to break even. Tracking actual variable costs (including disposables, laundry, card fees) ensures your margin assumptions match reality and supports sustainable profitability.