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Dealer Break-Even Calculator

“How many cars do I have to move this month?” The honest answer is your overhead divided by your gross per car. Put in your fixed costs and your average gross, and see the number — plus how many it takes to hit a real profit.

Your monthly fixed costs
Your unit economics

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Most lots don't know their break-even number — and it's the most important one they have

Every car you sell splits into two jobs: the first few just pay the rent, the payroll, and the floor plan, and only the cars after that put money in your pocket. If you don't know where that line sits, a “busy month” can still be a losing one — you moved metal and finished behind.

The math is simple once you have it: fixed overhead ÷ average gross per car. The trap is that most dealers don't know their real average gross (front and back, after recon) or their true fixed overhead. Get both right and you can set a volume goal that actually means something — and see instantly what an extra $300 of gross per car, or one fewer staff position, does to the number.

Know your real gross per car — automatically

This calculator is only as good as the average gross you feed it — and guessing is how lots end up upside down. DealerVLO tracks the true gross on every deal (buy price, reconditioning, holding, front and back) so your average isn't a hunch. Run the lot on it and the break-even math writes itself from real numbers.

  • Real front + back gross tracked on every deal, not estimated
  • Reconditioning and holding cost captured against each unit
  • Inventory turn and aging so you see what's dragging overhead
  • All 50 states' paperwork filled from the deal — no re-keying

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Common questions

How do you calculate a dealership's break-even point?
Fixed overhead ÷ average gross per car, rounded up. Overhead is what you pay every month no matter what (rent, payroll, floor-plan interest, insurance, utilities, software, ads). Gross per car is your front + back profit after per-car costs like recon. That quotient is the number of cars you must retail before the lot makes a dollar.
What's overhead vs. a per-car cost?
Overhead is monthly and volume-independent: rent, salaries, insurance, utilities, software, base advertising. Per-car costs — auction buy, reconditioning, transport, pack — belong inside your average gross, not overhead. Keep the two separate or the break-even number lies to you.
How do I lower my break-even?
Cut fixed overhead or raise average gross per car — and raising gross usually moves faster. Better buying, tighter recon spend, and back-end F&I all add to what each unit contributes toward overhead. Turning inventory faster helps too, by cutting the holding cost that eats gross.
Is floor-plan interest overhead or per-car?
Both, really. The line of credit is roughly fixed, but interest scales with how long each unit sits. For a quick break-even, put your typical monthly flooring interest in the overhead field; then use the floor-plan calculator to see what aging is costing you per unit.
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