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HVAC

HVAC Break-Even Calculator

Before a single dollar of profit, the month has to pay for itself. This shows the number of jobs that gets you there.

Your numbers

$
Rent, salaries, insurance, vehicle payments, software, marketing retainers. What you owe before any job is run.
$
$
Parts, materials and direct labour that only exist because the job exists.
days

Result

Jobs per month to break even 72
Revenue to break even $86,897
Jobs per working day 3.3
Contribution per job $580 What each job puts toward fixed costs
You need 72 jobs a month ($86,897) just to cover fixed costs, about 3.3 a day. Everything past that is profit.

This assumes one average job type. If replacements and service calls have very different economics, run it separately for each rather than blending them into one average.

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Questions

About this calculator

What counts as a fixed cost?

Anything you owe whether or not you run a single job this month: rent, office salaries, insurance, loan and lease payments, software subscriptions and marketing retainers.

Should the owner's pay be in there?

Yes, if you take a regular salary. Leaving it out makes break-even look lower than it is and hides the fact that you are funding the business personally.

What if my jobs vary wildly in size?

Run the calculator separately for each major job type, or use a weighted average price and variable cost based on your actual job mix over the last quarter.

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Break-even is easier with the leads you already paid for

Most contractors do not need more leads. They need to stop losing the ones that already call.