All terms
Finance & Moneybeginner

Fixed Costs

Definition

Business expenses that stay the same every month regardless of how much you sell, rent, software subscriptions, insurance, salaried staff.

Why it matters

Fixed costs set your break-even point. The higher your fixed costs, the more you must sell before making any profit. Keeping fixed costs lean gives you financial resilience.

Example

Your monthly fixed costs: Shopify £29, email platform £40, accountant £100, storage unit £80, insurance £35. Total: £284 every month whether you sell 0 or 1,000 units.

Related terms

Learn the language of business - and build the systems behind it.

Rich Girl Systems turns 1168+ founder concepts into a step-by-step programme with daily challenges, XP and your own assistant.

Take the free founder quiz