New free resources every week. Bookmark us and check back.
Free calculator · Business

Break-Even Calculator

Busy is not the same as profitable. Work out exactly how many jobs a month you need just to cover your overheads, and how many to hit the profit you actually want.

The short version

Break-even is the number of jobs a month where your profit covers your overheads and you are left with nothing extra. Add your monthly overheads to any profit target, divide by your profit on an average job, and that is how many jobs you need to land. Fall short of it and you are working for free.

Jobs needed = (Monthly overheads + profit target) ÷ profit per job
1. Your monthly overheads

Everything that goes out whether you work or not.

$
Rent, insurance, vehicle, admin, phone, and your own wage or drawings
$
On top of break-even, if you want a buffer or a goal. Set to 0 to see the bare break-even
2. What a job is worth

So we can turn the target into a number of jobs.

$
%
hrs
Optional, to also see this in billable hours
Jobs you need this month
0
to cover overheads and hit your target
Profit per job$0
Jobs per week0
Revenue needed a month$0
Billable hours needed a month0
Monthly overheads$0
Plus target profit$0

A guide, not financial advice. Figures are estimates and ignore tax and seasonal swings. Use your own overheads and average job figures for the most accurate picture.

Busy is not the same as covered

Plenty of trades can tell you their day rate. Far fewer can tell you the number that actually matters: how many jobs a month it takes before the business stops losing money. Without that number, a full diary feels like success even when it is barely covering the bills, and a quiet week feels like disaster even when the month is still on track.

Break-even is not a target to celebrate. It is the line under which every hour worked is unpaid. Knowing where it sits is what lets you tell the difference between a normal quiet patch and a genuine problem.

Overheads keep running whether you work or not

Rent, insurance, the van payment, your phone, your own wage or drawings, they all go out the same whether you did five jobs this month or fifteen. That is exactly why break-even is worked out against overheads, not against how busy you feel. The busier-feels-safer trap is one of the most common ways trades end up working hard for very little.

Set a target, not just a break-even

Break-even tells you the floor. A target profit on top of it tells you what you are actually working for, whether that is savings, a buffer for quiet months, or just a wage that reflects the risk of running the business. Add it in and the number of jobs you need becomes a real goal, not just a survival line.

Questions tradespeople ask

What does break-even mean for a trade business?
Break-even is the point where the profit from the jobs you have done exactly covers your monthly overheads, with nothing left over and nothing short. Below it you are losing money even if you are busy. Above it, every extra job is profit.
What counts as a monthly overhead?
Anything that goes out of the business regardless of how much work you do: rent or a home-office share, insurance, vehicle costs, phone, software, admin, and your own wage or drawings if you pay yourself a set amount. It does not include materials or subcontractor costs tied to a specific job, those are already inside your job margin.
Should I include my own wage in overheads?
Yes, if you want a realistic break-even. If you leave your own pay out, the calculator will tell you that you break even while you are actually working for nothing. Put in what you need to pay yourself and the number becomes meaningful.
How is this different from the True Hourly Rate Calculator?
The True Hourly Rate Calculator works out what to charge per hour so your rate covers your costs and profit. This calculator takes the next step: given that rate and margin, how many actual jobs a month you need to land to cover the business. Use both together for the full picture.
What should I do if I am short of my break-even most months?
Look at three levers: raise your prices or margin so each job contributes more profit, cut overheads that are not earning their keep, or win more jobs. Usually the fastest fix is pricing, since it improves every job at once rather than only the next one you win.

Keep going