Calculate the break-even point for a promotion

What you’ll create

A transparent break-even calculation, assumptions table, and decision questions for finance or the campaign owner.

Workflow steps

1. 01
   Confirm the promotion mechanic, period, product scope, currency, and whether the comparison is incremental or total sales.
2. 02
   Calculate unit contribution before and during promotion and the break-even volume or uplift from supplied values.
3. 03
   Run clearly labeled scenarios for uncertain volume or cost assumptions without calling them forecasts.
4. 04
   Prepare a short decision note with data gaps and a finance review checklist.

Start your workflow

Use the stages in order. Fill in the bracketed sections and add only source material you are permitted to share.

STAGE 1 — 1. Check the inputs
When to use: Use before calculating.
Prompt: Act as a careful commercial analyst. I need a break-even check for a promotion, not a sales forecast. Promotion: [mechanic and dates]. Product or basket: [scope]. Currency: [currency]. Regular selling price per unit: [amount]. Variable cost per unit: [amount and what is included]. Promo selling price per unit or discount: [amount]. Fixed promotion cost: [amount and items included]. Expected baseline units without promotion: [number or “unknown”]. Any supplier funding: [amount, conditions, or “none/unknown”]. First list missing, inconsistent, or ambiguous inputs. Ask up to three essential questions only. Do not calculate until price, cost, and unit basis are clear; label any values I ask you to assume.
Expected return: An input validation table and, if needed, up to three focused questions.
User check: Check currency, tax basis, per-unit basis, and whether funding is confirmed.

STAGE 2 — 2. Calculate break-even
When to use: Use when the inputs are complete or explicitly marked as assumptions.
Prompt: Using only the confirmed figures above, show: regular contribution per unit = regular price − variable cost; promo contribution per unit = promo price − variable cost; direct promotion cost; break-even promo units = fixed promotion cost ÷ promo contribution per unit, when promo contribution is positive. If baseline units are available, calculate the incremental units needed to cover the promotion and show the formula. If promo contribution is zero or negative, explain that unit-volume break-even is not achievable under these inputs. Preserve rounding and units. Do not add unknown costs.
Expected return: A concise calculation table with formulas, figures, units, and a clear note on what is excluded.
User check: Recalculate each line independently; confirm the denominator is positive and formulas match the stated mechanic.

STAGE 3 — 3. Prepare the decision note
When to use: Use after checking Stage 2 arithmetic.
Prompt: Turn the verified calculation into a decision note for [decision maker]. Include: promotion summary, break-even volume, comparison with baseline only if supplied, sensitivity cases for [user-provided low/base/high assumptions or ask me to provide them], excluded costs, key risks, and a recommendation framed as “approve for review,” “revise,” or “insufficient data.” Do not claim a scenario is likely unless evidence supports it. End with questions for Finance and the accountable campaign owner.
Expected return: A one-page review note and a short approval checklist.
User check: Ensure scenarios are labeled assumptions and the recommendation does not imply finance approval.