Free calculator for coworking operators
How many desk equivalents does a coworking space need to break even?
Almost every coworking cost is fixed. The lease, utilities, cleaning and staff run whether the space is full or empty. Break-even is the occupancy that covers them, counted in desk equivalents.
Break-even point
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desk equivalents a month to cover every cost
Profit at today's level
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per month, before owner pay
Cushion above break-even
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how many you could lose and still cover costs
The starting numbers are an example for a coworking space. Replace them with yours.
The worked example
Each desk equivalent brings in $400 a month and costs $40 to serve. That leaves $360 toward fixed costs of $45,000 a month. Divide one by the other and you need 125 desk equivalents to break even. Every desk equivalent past that adds $360 to profit.
Ways to lower break-even in a coworking space
- Sell private offices on longer terms.
- Rent meeting rooms and event space by the hour.
- Add virtual office plans that bring revenue without using desks.
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