05/23/2026
Your P&L says you made $100K. Your bank account says otherwise.
This is the math most business owners never run — and it's the reason "profitable" companies run out of cash.
Taxes eat ~30% first. Then debt service hits — loans, credit lines, equipment payments — none of which show up on your P&L. Stack those up and your real break-even can literally double.
We saw it happen: a business with $1.2M break-even actually needed $2.4M once debt and taxes were factored in. Same margins. Same overhead. Just reality doing its thing.
The equation works both directions. Forward: revenue down to what's left. Backward: start with what you owe and gross it up. That second number is the one that matters.
Share this with an owner who needs to see what their real number is.