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Pricing & Profit3 formulas shown

Break-Even Calculator

Enter your monthly fixed costs, your average job price and what an average job costs you to deliver, and see exactly how many jobs per month you need just to break even — before any profit.

You need about 10 jobs per month to break even.

Your typical month

Insurance, vehicles, rent, software, your salary…

Your average job

Materials, subs, dump fees, job fuel…
Jobs per month to break even
10
FormulaBreak-even jobs = Fixed costs ÷ Contribution per job
Your calculation$4,500.00 ÷ $450.00 = 10 → 10 jobs
Contribution per job
Price − variable cost ($1,200.00 − $750.00)
$450.00
Contribution margin
37.5%
Break-even revenue / month
$12,000.00

Job number 11 each month is where profit starts — before that, every job is just paying the fixed bills.

Worked example

Plumbing: where the number comes from

A one-van plumbing business with $4,500/month of fixed costs wants to know how many service calls it must sell to cover them.

InputValue
Fixed costs / month$4,500
Average job price$1,200
Variable cost / job$750 (materials, parts, sub work)

Result: 10 jobs a month to break even — job #11 is profit

If the plumber raises the average job to $1,300, break-even drops to 9 jobs — that's the leverage pricing has over workload.

Load this example into the calculator

The calculation

Contribution per job$1,200 − $750 = $450
Break-even jobs$4,500 ÷ $450 = 10
Break-even revenue10 × $1,200 = $12,000

How this calculator works

Every result comes from the formulas below — the math shown is the math used. Change any input and results update instantly in your browser; nothing is sent to a server.

  • Contribution per job: Contribution = Avg. Job Price − Variable Cost per Job
  • Break-even jobs per month: Jobs = Fixed Costs ÷ Contribution
    Every job above this number contributes toward profit.
  • Break-even revenue: Revenue = Jobs × Avg. Job Price

What the result means

The break-even number is how many jobs of your average size it takes to cover fixed costs. Contribution margin shows what share of each job's price is fighting fixed costs; everything after job N is margin toward profit.

When to use it

Use it to know how many jobs a month keep the lights on — before you set growth or income goals.

Common mistakes

  • Counting variable costs as fixed (or vice versa) — the answer moves a lot with that classification.
  • Using an 'average job' that's really your best job; be honest about the mix.

Frequently asked questions

How do I calculate my break-even point?

Divide your fixed monthly costs by the gross profit an average job contributes (price minus variable costs). If fixed costs are $4,000 and each job contributes $400, you need 10 jobs a month to break even. Job number 11 is where profit starts.

What are fixed vs. variable costs for a contractor?

Fixed costs repeat whether or not you work: insurance, truck payment, rent, software. Variable costs scale with each job: materials, subcontractor payments, dump fees, job-specific fuel. Wages of field crews are usually treated as variable per job; your own salary as owner belongs in fixed costs.

Next step

Break-even jobs are the minimum — raising your average price lowers that number.

Re-price your average job
Break-Even Calculator for Service Businesses — Jobs Needed to Break Even | RateCraft