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Money

What is Fixed costs?

Costs that arrive whether or not you sell anything. They set the height of the bar you have to clear every month.

Money

The definition

Costs that stay the same regardless of how much you sell, such as rent or software subscriptions.

An example

Rent, insurance and software at $2,400 a month is what you owe in a month with no sales at all.

Where it comes up

This shows up in the breakeven calculator on this site.

Related

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Questions people ask

What is Fixed costs?

Costs that stay the same regardless of how much you sell, such as rent or software subscriptions. Costs that arrive whether or not you sell anything. They set the height of the bar you have to clear every month.