How much do you really need to sell?
Most contractors aren't "unprofitable"—they're just under-selling. If your overhead is $150k and you think a $500k year is a win, you might be surprised to find you're barely breaking even.
Break-Even Calculator
You must generate $333,333 in sales every year just to cover your costs and earn $0 in profit.
The "Why" Behind the Math
The break-even point is the revenue level where your total sales minus your direct costs (Materials + Labor) exactly equals your fixed costs (Overhead).
Step 1: Know Your Burn Rate
Your overhead (fixed costs) includes everything you pay even if you don't have a single project scheduled: Office rent, truck payments, insurance premiums, and non-billable staff salaries.
Step 2: Track Your Margin
Your average gross margin determines how much "fuel" each sale generates to pay for the overhead. A 30% margin means every $1.00 in sales provides $0.30 to pay the bills.
How to Lower Your Break-Even Point
- Increase your margin: A 5% boost in margin can lower your required revenue by six figures in some cases.
- Cut fixed overhead: Every $1,000 you cut from annual overhead is $3,333 less you have to sell (at a 30% margin).
- Automate with RemodelFin: Reduce the administrative "overhead" time and get more billable hours from your team.
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