Phase 1 · Live · Profitability
Revenue Stress Tester
A 20% revenue reduction is not a catastrophic scenario — it is a realistic one. This tool calculates your contribution margin and break-even gap, then shows your exact net position if revenue falls 20%. Enter monthly revenue, fixed costs, and variable cost rate to see where you stand.
How to read your result
- Above 30% gap — Strong: Significant buffer before break-even. Revenue can absorb a meaningful drop without turning the business cash-negative.
- 10–30% gap — Adequate: Within planning range, but a 20% revenue shock will compress your position. Review your fixed cost base.
- Below 10% gap — Caution: Thin margin above break-even. A small revenue dip creates operating losses. Identify which fixed costs can flex.
- Already loss-making — Critical: Revenue is already below break-even. Immediate focus on either revenue recovery or cost reduction is required.
What this tool does not do
- Model revenue recovery timelines or growth trajectories
- Account for cash conversion delay between revenue and collection
- Include one-off costs or seasonal cost variations
- Reflect the compounding effect of sustained revenue loss on cash reserves
This tool is a decision-support aid and does not constitute financial advice.