Service Business Break-Even Calculator

Stop Guessing — Know Your Break-Even Number

Every service business has a break-even point: the minimum number of jobs (or revenue) needed each month just to cover operating costs. Knowing yours is the foundation of every pricing and growth decision you make.

This calculator gives you that number in seconds.

The Three Numbers You Need

Monthly fixed costs — These are expenses that stay constant regardless of how many jobs you run: rent, insurance premiums, loan payments, software subscriptions, salaried staff, vehicle payments. Total these up and enter the monthly amount.

Average revenue per job — What does a typical job invoice for? If your jobs vary widely, use a realistic average across your most common service type.

Average variable cost per job — These are costs that only occur when you complete a job: hourly labor, materials, fuel/mileage for that trip. Do not include fixed costs here.

Understanding Contribution Margin

Contribution margin is the revenue left over after covering variable costs — and it’s what each job contributes toward covering your fixed expenses.

If you charge $300 per job and spend $100 on variable costs, your contribution margin is $200. Every job you complete puts $200 toward your fixed cost pile. Once you’ve done enough jobs to cover all fixed costs, every additional job generates pure profit.

Using Break-Even to Make Better Decisions

Thinking about hiring? — Add the new employee’s true annual cost ÷ 12 to your monthly fixed costs and recalculate. How many more jobs do you need to break even on that hire?

Considering a price increase? — Run the calculator with your new price. You’ll likely hit break-even with fewer jobs.

Planning for a slow month? — Know the minimum job volume you need to avoid a loss.