Break-Even Calculator
Use this break-even calculator to work out how many jobs or sales you need to cover fixed costs before profit starts.
What This Calculator Does
This calculator uses fixed cost, price, and variable cost to show the number of jobs needed to break even. It helps you understand your minimum workload before the business starts making real money.
How to Use
- Enter fixed costs.
- Enter your selling price per job.
- Enter the variable cost per job.
- Click calculate to see break-even volume.
Example
If fixed costs are $8,000 a month and each job contributes $400 after variable cost, you need 20 jobs to break even.
Why This Calculation Matters
Break-even tells you the minimum level of work the business needs. It helps with planning, sales targets, and deciding whether prices are high enough.
Common Mistakes
- Using revenue instead of contribution per job.
- Leaving out fixed monthly costs.
- Forgetting seasonal downtime.
- Thinking busy automatically means profitable.
FAQs
What is break-even?
Break-even is the point where total income equals total costs and profit is zero.
Why does break-even matter?
It shows the minimum work needed before the business starts generating profit.
Can I use this for monthly planning?
Yes. It works well for planning sales targets and workload.