Break-even Point (BEP) Calculator
Thinking about starting your own business?
This break-even calculator helps you figure out one of the most important things every entrepreneur should know: how much you need to sell just to cover your costs.
A break-even analysis shows you the number of sales needed to pay off both your fixed costs (like rent, tools, or insurance) and your variable costs (like materials or labor). In other words, it helps you answer “When do I stop losing money and start making a profit?”
The calculator is simple to use, but if you prefer to run the numbers yourself, scroll down — we’ve included the break-even point formula and explained exactly how it works.
Break-Even Point (BEP) Calculator
Salaries, Insurance, Rent, Loan Payments, Utilities, etc.
Raw materials, piece-rate labor, production supplies, commissions, credit card fees, etc
Total Summary
What is a break-even point calculator?
A Break-even Point Calculator helps you figure out how much work you need to do — or how many jobs you need to complete — to cover your costs and start making a profit.
It shows the point where your income equals your expenses. After that, everything you earn is profit. Whether you’re running a small business, working for yourself, or managing a crew, knowing your break-even point keeps your pricing, planning, and budgeting on track.
Who uses a break-even point calculator?
This tool is designed for hard-working professionals who want to stay on top of their numbers, including:
Small business owners: from local shops to mobile services
Independent contractors: like electricians, HVAC techs, or handymen
Freelancers: graphic designers, consultants, photographers, etc.
Tradespeople & skilled workers: plumbers, roofers, landscapers, welders, mechanics, and more
If you’re quoting jobs, buying materials, and tracking hours — this tool helps make sure you’re not working for free.
Break-even point calculator formula
Here’s how it works in simple terms:
Break-even Point = Fixed Costs / (Price per Job – Cost per Job)
Where:
- Fixed Costs = Things you pay no matter how many jobs you do (rent, insurance, truck payments)
- Cost per Job = What it costs you to do one job (materials, fuel, labor, etc.)
- Price per Job = What you charge your customer for one job
If you want to find out how much revenue you need to break even:
Break-even Revenue = Fixed Costs / (1 – (Variable Costs ÷ Price))
How to use our break-even point calculator (step-by-step)
Using our Break-Even Point Calculator is simple — just follow these quick steps to figure out exactly how much you need to earn to cover your costs and start making a profit.
Step 1: Enter your fixed costs
These are your monthly or yearly expenses that don’t change, no matter how many jobs you take on.
- Rent or mortgage
- Insurance
- Equipment leases
- Business licenses
- Software or app subscriptions
Add up your total and enter it into the fixed costs field.
Step 2: Enter your variable costs (per unit or job)
These are costs that change depending on how many sales or jobs you do.
- Materials or supplies
- Fuel or mileage
- Hourly labor or subcontractors
- Packaging or shipping
Enter your variable cost per unit/job into the calculator.
Step 3: Enter your selling price (per unit or job)
This is how much you charge your customer for one job, product, or service.
It could be a flat fee, hourly rate, or per-project price.
Type in your selling price for one job or unit.
Step 4: Review your break-even point
Once you’ve filled in your fixed costs, variable costs, and selling price, the calculator will instantly show you:
Break-even units or jobs (how many you need to sell to cover your costs)
Break-even revenue (how much total income you need to earn before making profit)
You’ll see your results instantly — no signup, no math required.
Step 5: adjust for different scenarios
Want to see what happens if your material costs go up or you raise your prices? Just tweak the numbers and re-run the calculation. This helps you plan smarter, price confidently, and stay ahead of rising costs.
Break-even point analysis
1. See exactly when you stop losing money
Every business has overhead — truck payments, tools, insurance, office/shop rent, phone plans. These costs add up fast, and you’re paying them whether you work or not. The break-even point tells you how many jobs, hours, or contracts you need to cover all that before any profit kicks in.
Without knowing that number, you’re flying blind.
2. Test "what if" scenarios before you make a move
Want to hire an extra hand? Raise prices? Switch to higher-quality materials?
Break-even analysis lets you see how those changes affect your bottom line:
Adding a worker = higher fixed and variable costs. How many more jobs do you need to break even?
Raising prices = can reduce how much work you need, but will customers still say yes?
Buying a new truck = a new fixed cost. Will you need to work extra jobs to cover it?
By plugging different numbers into the calculator, you can run real-time scenarios before you commit.
3. Protect yourself from price shocks
In blue-collar industries, costs change fast — gas prices rise, lumber gets expensive, suppliers raise rates. A break-even analysis helps you:
Track your profit margins
Spot when material costs are eating into earnings
Adjust pricing quickly before you lose money
Think of it as an early warning system. If your break-even point creeps up, something’s eating your profit.
4. Guide your pricing strategy
Many small business owners undercharge — often because they base pricing on competitors or guesswork. A solid break-even analysis helps you:
Know your true cost of doing business
Set prices that are fair and profitable
Justify your pricing to customers with confidence
This is especially critical if you’re bidding on jobs, offering flat-rate services, or working through slow seasons.
5. Plan for profit — not just survival
Breaking even means you’re surviving. But you’re not in business to just scrape by — you’re in it to build something better.
Once you know your break-even point, you can:
Set monthly revenue targets beyond break-even to grow your business
Plan for profit margins (aim for 30% over break-even)
Decide when it’s time to scale, reinvest, or take a break
It turns your business from a hustle into a system you can rely on.
6. Use break-even as a sales + scheduling tool
When you know how many jobs you need to hit your break-even, you can build your calendar accordingly. For example:
“I need 12 jobs a month to break even — let’s aim for 15.”
“We’re halfway through the month with only 5 jobs — time to run a promo.”
“We already covered fixed costs — the next few jobs are pure profit.”
It gives your work schedule real goals that are tied to real money — not just how busy you are.
7. Align your break-even with your business goals
Your break-even point isn’t set in stone. Use it as a baseline and then build goals like:
Lowering fixed costs to break even faster
Increasing prices to work fewer hours for the same return
Expanding your crew once you consistently beat your break-even targets
It’s not just a number — it’s a lever you can pull to adjust your business in any direction you choose.
3 real-world examples for blue collar use
1. A plumber quoting service jobs
You charge $250 for a standard plumbing repair. Materials and fuel cost you $60 per job. Your monthly expenses (van lease, phone, tools, insurance) total $2,000.
Break-even point: You need to complete 10 jobs a month to cover costs.
2. A landscaping business with seasonal work
You offer yard clean-ups for $300 each. Your variable cost is $100/job. Fixed monthly costs: $3,000.
Break-even: You need to do 15 clean-up jobs a month before you turn a profit.
3. An independent HVAC contractor
You install systems at $4,000 per job. Each job costs you $2,500 in materials and labor. Your monthly business expenses are $5,000.
Break-even: You only need 2.5 (round to 3) installs a month to break even.
Additional information
Fixed Costs: Think rent, equipment payments, insurance, licensing fees — they don’t change month to month.
Variable Costs: These go up and down depending on how many jobs you take — like materials, fuel, or labor hours.
Profit Starts After Break Even: Once your costs are covered, every extra job means money in your pocket.
FAQs about our online break-even point calculator
The break-even point (BEP) is the moment your income equals your expenses — meaning you’ve made enough money to cover all your costs, but haven’t made a profit yet.
Once you pass the break-even point, every additional sale or job puts money in your pocket as profit. It's a key number that helps you know how much work you need to do just to stay in business.
To calculate your break-even price (the minimum you should charge per job or unit to cover costs), use this formula:
Break-Even Price = (Fixed Costs ÷ Number of Units) + Variable Cost per Unit
Here’s what that means:
- Fixed costs are your regular monthly or annual expenses (rent, insurance, equipment, etc.)
- Variable cost per Unit is what it costs you to do one job (materials, fuel, labor, etc.)
- Number of units is how many jobs or sales you expect in that period
This tells you the lowest price you can charge without losing money.
You can easily calculate your break-even point in Excel using a basic formula:
Let’s say:
- Fixed Costs = $3,000
- Selling Price per Unit = $500
- Variable Cost per Unit = $200
Use this formula in Excel:
=FixedCosts / (SellingPrice - VariableCost)
In numbers:
=3000 / (500 - 200) Excel will return 10 — meaning you need to sell 10 jobs or units to break even.
You can also use Excel to:
- Create charts
- Run "what-if" scenarios by adjusting costs or prices
- Calculate break-even revenue using:
=FixedCosts / ((SellingPrice - VariableCost) / SellingPrice)
If you want to find out how much total revenue (income) you need to break even, use this formula:
Break-Even Revenue = Fixed Costs / Contribution Margin Ratio
Where:
Contribution Margin Ratio = (Selling Price - Variable Cost) ÷ Selling Price
Example:
- Selling Price = $500
- Variable Cost = $200
- Fixed Costs = $3,000
First, calculate the margin ratio:
(500 - 200) ÷ 500 = 0.6
Then:
3000 ÷ 0.6 = $5,000
That means you need $5,000 in income (total revenue) to break even.
