Know your number. Enter your monthly overhead, owner's salary, and average job economics to see exactly how much revenue you need to break even — and how many jobs that takes.
Materials + labor + subs (before overhead)
| Expense | Typical Range | Notes |
|---|---|---|
| Shop / Office Rent | $500-$3,000 | Includes storage, yard |
| Vehicle Payments | $500-$2,000 | Truck(s), trailer, fuel |
| Insurance | $300-$1,500 | GL, auto, umbrella, bonding |
| Tools & Equipment | $200-$800 | Replacement, maintenance, leases |
| Marketing | $200-$2,000 | Website, ads, yard signs, referral bonuses |
| Phone / Software | $100-$500 | CRM, estimating, accounting software |
| Office / Admin Staff | $0-$5,000 | Bookkeeper, admin, dispatcher |
A break-even analysis tells you the minimum revenue needed to cover all your costs — both fixed overhead (rent, insurance, trucks) and variable costs (materials, labor per job). Below break-even you're losing money; above it, you're profitable. Every contractor should know their monthly break-even number.
Most successful contractors target 35-50% gross margin (revenue minus direct job costs, before overhead). General contractors typically see 25-35%, while specialty trades like electrical and plumbing can achieve 40-55%. If your margin is below 25%, you're likely not charging enough.
You can lower your break-even by: (1) increasing your gross margin by charging more or reducing job costs, (2) cutting fixed overhead expenses, or (3) both. Even a 5% improvement in margin can dramatically reduce how many jobs you need per month.
Calculate the true cost of employees including payroll taxes, workers' comp, insurance, and benefits. Know your fully burdened hourly rate.
Convert between markup and margin percentages. See how your markup translates to profit margin and vice versa.
Calculate your profit margin from job costs and selling price. See revenue, profit, and margin percentage.
Contractor Co-Pilot builds overhead and profit margins into every estimate automatically.
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