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.
Contractor finance
Break-Even Calculator
Know exactly how much you need to bring in before you make a profit.
Enter your monthly numbers
Know exactly how much you need to bring in before you make a profit.
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Rent, insurance, salaries, software, vehicles, and other overhead.
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Labor, materials, and subcontractors tied directly to each job.
Results
These numbers show how much each job contributes before your business starts generating actual profit.
- Contribution Margin per Job
- $3,300.00
- Number of Jobs to Break Even
- 3.6
- Revenue Required to Break Even
- $30,909.09
3.6 jobs covers overhead. Revenue after that point starts turning into profit.
Education
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.
See the practical next steps