Contractor finance
Break-Even Calculator
Know exactly how much you need to bring in before you make a profit.
Enter your monthly numbers
Step 1: Contribution Margin per Job = Job Price - Variable Cost
Step 2: Break-Even Jobs = Fixed Costs / Contribution Margin
Step 3: Break-Even Revenue = Break-Even Jobs x Job Price
If you don't know your break-even point, you don't know if your business is actually profitable.
Results
These numbers show how much each job contributes before your business starts generating actual profit.
Contribution Margin per Job
$0.00
Number of Jobs to Break Even
Increase job margin
Revenue Required to Break Even
Not available
If variable cost is equal to or higher than job price, there is no break-even point.
What is break-even?
Break-even is the point where your revenue has covered both the direct cost of the work and the fixed cost of running the business. Before that point, you are still paying off overhead.
Why contractors miss this
Many contractors focus on whether a job has money left after labor and materials. That misses the monthly overhead the business still has to absorb before any real profit exists.
How this affects pricing and growth
If your contribution margin is too thin, you need too many jobs just to stay even. Knowing that number helps you price correctly, decide what work to take, and grow without adding unprofitable volume.
Related resources
Understanding your numbers is step one. Tracking them across every job is what keeps your business profitable.