Free tool

Service Business Break-Even Calculator

Find the monthly revenue you need to cover all costs, plus what it takes to pay yourself a real wage.

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Most service business owners don't know their break-even number, so they can't tell if a slow month is normal or panic-worthy. This calculator works the math: monthly fixed costs (rent, insurance, vehicle, software), variable cost % per job (labor + materials), and target owner pay. Output: monthly revenue you need to break even, and the higher number you actually want to hit.

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Rent, insurance, vehicle payments, software, phone, marketing baseline. Costs that exist whether you do 0 jobs or 200.

$

Labor + materials + fuel + sub costs that scale with revenue. Service businesses typically 50-70%.

%
$

What you want to pay yourself net of taxes. Use $0 if you're salaried or just want pure break-even.

$

Self-employment + federal + state. Default 30% is typical for sole proprietors.

%

Track your break-even in real time

Smarfle's Reports dashboard shows monthly revenue + cost rollups so you know mid-month whether you're tracking ahead or behind your break-even number. No spreadsheet maintenance.

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How this calculation works

Break-even = the revenue at which your gross profit equals your fixed costs. Math: - Contribution margin = 1 - variable cost % - Break-even revenue = fixed costs / contribution margin - Break-even jobs = break-even revenue / avg job value A business with $4,500/month in fixed costs and 60% variable costs (40% contribution margin) breaks even at $11,250/month, or about 30 jobs at $380 average. The "Target revenue" line goes one step further: covers fixed costs PLUS the owner's pre-tax pay (your take-home target grossed up for taxes). Most owners want this number, not pure break-even. The "Margin of safety" tells you how much revenue can drop before you start losing money. Above 30% is healthy. Under 15% means you're one slow month away from negative cash flow. Daily numbers (revenue/day) make the goal more tangible. $11,250/mo doesn't feel real; "$512/day to break even" does.

Real scenarios

Find the persona closest to yours, then click to load those numbers into the calculator.

HVAC owner, mid-size shop

$8,500 fixed, 58% variable, $450 avg ticket, $8,500 owner take-home target.

Break-even ~$20K/mo (44 jobs). Target ~$49K/mo (108 jobs). Daily target $2,217/day. Mid-month tracker tells you if you're on pace.

Solo handyman

Lean overhead ($1,500/mo), low variable %, modest goals.

Break-even just $2,300/mo (10 jobs). Target $14,400/mo (59 jobs). Margin of safety: 84%. Solo operators have huge cushions if they keep overhead low.

Cleaning company, 3 cleaners

Labor-heavy (70% variable), $3,200 fixed, $180 avg job.

Break-even ~$10,700 (60 jobs). Hard work because each job has thin contribution margin. Pricing increases are the highest-leverage move.

Frequently asked questions

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