How Many Jobs Do I Need Each Month to Break Even?

By Bill Stilwell · Last reviewed October 16, 2026

The short answer

Your break-even point is the number of jobs or sales you need to cover all your costs, with nothing left over. The U.S. Small Business Administration (SBA) formula is: fixed costs divided by (price minus variable cost per unit). If your monthly fixed costs are $6,000 and each job earns $300 after its direct costs, you need 20 jobs a month to break even.

What this means

The outline asks you to determine how many jobs, sales, or customers are required to cover costs.

Three numbers go in:

Fixed costs: your monthly overhead (see 7.8.10 Fixed Costs)
Price per job: your average sale (see 7.1.7 Average Sale)
Variable cost per job: labor, materials, travel, fees, and callbacks for one job (see 7.1.8 Direct Delivery Cost and 7.8.7 Warranty, Refund, and Bad Debt Costs)

Price minus variable cost is what each job contributes toward overhead. The SBA calls the share of price left over the contribution margin.

Break-even jobs = fixed costs ÷ (price minus variable cost per job)

Example: a house cleaning business charges an average of $180 per clean. Each clean costs $105 in cleaner pay, supplies, and travel. That leaves $75 per clean. Fixed costs are $3,000 a month. $3,000 ÷ $75 = 40 cleans a month to break even. If the owner can do about 60 cleans a month (see 7.1.9 Capacity), there’s room for profit. If capacity is only 35, the plan doesn’t work yet.

Why it matters

It tells you if the plan can work. If you need more jobs than you can do or than the market has, change the plan.
It sets your sales goal. You know the minimum number of jobs to aim for each month.
It sets your lead goal. If you close 1 out of every 3 estimates, 40 jobs means about 120 estimates.
It shows the effect of changes. A small price increase or cost cut can lower the number a lot.

Who this applies to

Every business. Service businesses count jobs or visits. Product businesses count units or orders. Recurring businesses can count active customers.

How to do it

Get your monthly fixed cost total (see 7.8.10 Fixed Costs).
Get your average price per job or sale.
Get your variable cost per job, including callbacks and payment fees.
Subtract variable cost from price. That’s what each job contributes.
Divide fixed costs by that amount. Round up. That’s your monthly break-even jobs.
Compare it to your capacity (see 7.1.9 Capacity) and your market size (see 7.4.1 Market Size).
Work backward to leads: divide break-even jobs by your expected close rate.
Try a few “what if” versions: a higher price, a lower cost, fewer fixed costs. See which change helps most.
You can check your math with the SBA’s free break-even calculator.
Update the number every quarter as real costs come in.

What proof to keep

Your break-even worksheet with each input and its source
Your “what if” versions
A monthly comparison of actual jobs to break-even jobs once you’re open

Keep these with your financial model. Lenders often ask how many sales you need to cover costs.

Common mistakes

Leaving out your own pay. Break-even without your pay means you work for free.
Using the price, not what’s left after job costs. Dividing fixed costs by price makes the number look far too low.
Ignoring callbacks and fees. Small costs per job add up across many jobs.
Using a busy-season month. Use an average month, then check slow months too (see 7.4.3 Seasonality).
Never comparing to capacity. A break-even number you can’t physically reach is a warning, not a goal.

When to get help from a pro

You can do the math yourself. A bookkeeper or certified public accountant (CPA) can check that your costs are complete. Ask:

Are my fixed and variable costs complete and in the right groups?
How would this change if I hired my first employee?

Bill’s note

[Bill: add a short story or opinion here. For example, the break-even number for SiteSmarty, or how you use break-even to set lead goals for a client’s Google Business Profile.]

How I did this for SiteSmarty

[Date I did this:]
[What I actually did, step by step: my fixed costs, price, variable cost, and the break-even number]
[What it cost and how long it took:]
[What surprised me or what I’d do differently:]
[Screenshot or photo to add, with private info blurred: my break-even worksheet]
[Result so far:]

Questions people ask

What is the break-even formula? Fixed costs divided by (price minus variable cost per unit). The answer is how many units or jobs you need to cover all costs.

What is contribution margin? The part of each sale left after its direct costs, shown as a share of the price. It’s what each sale adds toward overhead and profit.

How many customers do I need to cover my costs? Run the formula with your own numbers. Then divide by your close rate to see how many leads you need.

What if my break-even number is too high? Raise the price, cut cost per job, lower fixed costs, or change the offer. If none of these work, revisit the idea (see 7.9 Proceed, Revise, or Stop Decision).

Audit check

Question: Has the owner calculated a monthly break-even number with complete costs and compared it to capacity and market size?
Pass looks like: A worksheet with fixed costs (including owner pay), price, variable cost per job, the break-even number, a lead target, and a comparison to capacity.
Fail looks like: No break-even number. Fixed costs divided by price. Owner pay left out. Break-even higher than capacity with no plan to change it.
Evidence to collect: The worksheet, the inputs and their sources, and the capacity comparison.

Where this fits

Do this first: 7.8.10 Fixed Costs, 7.1.7 Average Sale, 7.1.8 Direct Delivery Cost

Do this next: 7.8.12 Cash Needed Before Customers Pay

Sources

U.S. Small Business Administration, "Break-even point" (checked October 16, 2026)
U.S. Small Business Administration, "Calculate your startup costs" (checked October 16, 2026)
U.S. Small Business Administration, Break-even calculator (checked October 16, 2026)

This page explains general rules and Bill's own experience. It is not legal, tax, or insurance advice. Talk to a qualified professional about your situation.