Free tool · for operators
Taxi business break-even calculator
A taxi business breaks even when the contribution from its rides covers its fixed costs. Contribution per ride is the average fare minus the driver's share, card fees and any other cost per ride; break-even rides = monthly fixed costs ÷ contribution per ride. Enter your figures to see the rides you need each day and per vehicle.
Your unit economics
What one ride leaves, and how many cover the month
The figures shown are examples. Use your own fares, deal with drivers and fixed costs.
Currency
49
rides a day · 1,454 a month · 4.8 per vehicle a day
Break-even rides = fixed costs ÷ contribution per ride. Every ride above that line is profit before tax; if drivers are paid by the hour rather than a share of fares, put their pay into the fixed costs instead.
How it works
Contribution per ride, then break-even
Every ride brings in a fare and costs something to deliver. In a commission or rent model most of the fare goes to the driver, so the operator’s part is what is left after the driver’s share, the card fees on rides paid by card and any other cost per ride, such as SMS, booking fees or fuel you pay for. That remainder is the contribution per ride.
Fixed costs do not move with the number of rides: the office, dispatch staff, software, insurance and marketing. Dividing them by the contribution per ride gives the rides a month that pay for them; dividing again by your operating days and vehicles shows what that means for each day and each car.
Two numbers move the answer most: the driver’s share and the average fare. A point of commission or a pound on the average fare changes every ride, so test both. For pricing, see the taxi tariff calculator; for the start-up money that carries you to break-even, the startup cost calculator.
FAQ
Break-even questions
How do I calculate break-even for a taxi business?
Work out the contribution per ride: average fare minus the driver's share, card fees and any other cost per ride. Divide your monthly fixed costs by it to get the rides a month you need, then by your operating days for rides a day.
Is a taxi business profitable?
It can be once rides above break-even pay for the fixed costs. The margin per ride is thin when drivers keep most of the fare, so profit comes from volume, a lean fixed-cost base and the right prices.
What are a taxi company's fixed costs?
The costs that stay the same whatever the number of rides: office rent and bills, dispatch and admin staff, dispatch software, insurance you hold as the operator, licence renewals and steady marketing. Vehicle finance is fixed too when the company owns the cars.
How many rides a day does a taxi need to break even?
Divide the break-even rides a day by the number of vehicles. The calculator shows it per vehicle, which is the number to compare with how many jobs one car can realistically do in a shift.
Run these numbers inside your dispatch system
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