Breakeven is one of those calculations that could be defined in a dozen different ways, but Prism's formula has been purpose-built from the ground up to ensure that you always have the most accurate data right at your finger tips.
Prism takes multiple inputs and variables into account, both for internal and external figures, all at once. Here is a simplified look at how our breakeven formulas work:
Internal Breakeven: [(Total Internal Fixed Costs + Artist Guarantees) - Flat Additional Internal Revenue)] / (Adjusted Ticket Price + Per Ticket Additional Internal Revenue - Total Variable Costs Per Ticket )
External Breakeven: [(Total External Fixed Costs + Artist Guarantees) + ((Promoter Profit % * (Total External Fixed Costs + Artist Guarantees))] / (Adjusted Ticket Price - Total External Variable Costs Per Ticket including Promoter Profit)
Adjusted Ticket Price in the above calculations is the Ticket Price - Taxes, Facility Fees, and and Pre-settlement Fees.
A few quick notes
Many people only remove tax when calculating Adjusted Ticket Price, but remember that pre-settlement fees and facility fees are also removed in our calculation
If there is an artist Plus deal with a Gross % bonus, that % will also count towards Total Variable Costs Per Ticket. For example, let's take a Plus deal with a 50% Gross Bonus. In this case, if there was just one ticket tier priced at $20, without any other taxes or fees, $10 per ticket would be subtracted, since half of every ticket is going towards the artist payout. In other words, this 50% Gross Bonus is accounted for the same way a 50% of Gross Variable Cost would be.
Adjustments do not factor in to the breakeven calculation
We can remove breakeven from displaying on offers! If you'd like us to make this update, please reach out to your Client Success Manager or to email@example.com. (Note: this is an account-wide setting.)
Would you like a more in-depth explanation of how we calculate breakeven? Reach out to your Client Success Manager (or firstname.lastname@example.org) to learn more.