Break-Even Calculator
Find out how much revenue you need to cover your costs
Break-even analysis shows you:
- Break-Even Point: Minimum sales needed to cover all costs
- Fixed Costs: Expenses that don't change (rent, insurance, salaries)
- Variable Costs: Expenses that change with sales (materials, labor)
- Contribution Margin: Revenue minus variable costs (covers fixed costs)
Rent, insurance, salaries, utilities - costs that stay the same regardless of sales
Materials, direct labor, supplies - costs that increase with each job
What you charge customers on average
How much profit you want to make beyond covering costs
• Review your break-even point quarterly
• Try to reduce fixed costs when possible
• Higher contribution margin = faster break-even
• Consider seasonal variations in your business
Jobs Needed to Break Even
1,200
jobs per year
Revenue Needed to Break Even
$120,000
per year
Jobs Needed
2,200
jobs per year
Revenue Needed
$220,000
to make $50,000 profit
Additional Jobs Beyond Break-Even
1,000
jobs needed for profit goal
Based on 260 working days per year (52 weeks × 5 days)
Reduce fixed costs: Renegotiate rent, shop insurance rates
Reduce variable costs: Better supplier pricing, efficient labor
Increase prices: Add value to justify higher rates
Increase volume: More marketing, better conversion rates