How to use this break-even calculator
Enter three numbers and read the answer live: your fixed costs for the period (rent, insurance, salaries, software — what you pay no matter what), your price per unit or job, and the variable cost of delivering one (materials, subs, fees). The tool shows the units and revenue you need to break even. Add a target profit and it also shows what it takes to hit that goal.
The break-even formula
Break-even is simple once you separate fixed from variable costs:
- Contribution margin = price − variable cost (what each sale contributes).
- Break-even units = fixed costs ÷ contribution margin.
- Break-even revenue = break-even units × price.
- Units for a profit goal = (fixed costs + target profit) ÷ contribution margin.
A worked example
Say your business has $10,000 of fixed costs a month, you charge $100 per job, and each job costs you $60 in materials and labor. Your contribution margin is $40 (a 40% ratio), so you break even at 250 jobs — $25,000 in revenue. Want $4,000 of profit on top? That is (10,000 + 4,000) ÷ 40 = 350 jobs. Every job past break-even drops its full $40 margin to your bottom line.
Why break-even matters
Break-even is the first number to check before you drop a price, take on a new fixed cost, or set a monthly goal. If a discount pushes your break-even past what you can realistically sell, it is a bad deal no matter how busy it makes you. Pair this with the markup vs. margin guide to make sure your prices leave real profit, and quote the work itself with the free estimate templates.