Electrical
Electrical Business Break-Even Calculator
Estimate how many electrical jobs must contribute enough gross profit to cover monthly fixed costs.
Result
Break-even, not a target. It is the point where the business stops losing money, which is a floor rather than a plan. Owner's pay only counts here if it is inside the fixed costs you entered.
Get a Free Business AuditWhat moves the number
- Fixed costs should exclude variable costs already absorbed in job margin.
- The average job value must reflect the work you expect to win.
- Contribution per job determines the volume required to cover the overhead base.
Where this one goes wrong
A blended average hides an important capacity constraint: one installation may occupy a crew much longer than several repairs. Break-even job count must be compared with the hours needed to deliver that particular mix.
Questions
About this calculator
Which margin belongs here?
Use the share remaining after the direct costs represented by the job. A selling-price markup is a different measure and cannot be entered as if it were gross margin.
Why can break-even rise when bookings increase?
The new work may have a lower contribution per job, or staffing and vehicles may raise fixed costs. Revisit both the mix and the cost base.
Does reaching the result create a cash buffer?
No. Operating break-even covers the modeled costs. Funding late-paying customers, equipment purchases and reserves requires additional planning.
The formula
break-even jobs = fixed costs / (average job value x gross margin%)
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How to use this calculator
- Monthly fixed costs ($). Rent, office wages, insurance, vehicle payments, software, advertising.
- Average job value ($). Enter your own figure; the page starts at $540.
- Gross margin per job (%). Enter your own figure; the page starts at 47%.
The result updates as you type, so you can try a figure, see what it does to jobs needed per month, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Monthly fixed costs | $11,000 |
| Average job value | $540 |
| Gross margin per job | 47% |
What comes out
| Result | Value |
|---|---|
| Jobs needed per month main result | 44 |
| Revenue needed per month | $23,760 |
| Gross profit per job | $253.80 |
| Jobs per working day | 2.0 |
You need 44 jobs a month, about 2.0 a working day, to cover $11,000 of fixed cost. That is $23,760 of revenue before the business earns anything.
How sensitive the answer is
Holding everything else steady and changing only monthly fixed costs, this is what happens to jobs needed per month. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Monthly fixed costs ($) | Jobs needed per month |
|---|---|
| $5,500 | 22 |
| $8,250 | 33 |
| $11,000 example above | 44 |
| $16,500 | 66 |
| $22,000 | 87 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Monthly fixed costs ($)
- Rent, office wages, insurance, vehicle payments, software, advertising.
- Average job value ($)
- A money amount, starting at $540.
- Gross margin per job (%)
- A percentage, between 0 and 95, starting at 47%.
What the results tell you
| Result | What it is |
|---|---|
| Jobs needed per month | The headline result. A number. |
| Revenue needed per month | A money figure. |
| Gross profit per job | A money figure. |
| Jobs per working day | A decimal figure. |
Before you rely on this number
Conductor sizing, voltage drop and load figures are governed by code, and the code takes precedence over any calculator. Ambient temperature, conduit fill, continuous load factors and the specific installation all change the answer. Treat this as a first pass, not a design.
Estimating is the easy part
The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.