Professional services
Law Practice Break-Even Calculator
How much practice work you need each month before the business starts making money.
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.
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About this calculator
Does my own wage go in fixed costs?
If you take a regular wage, yes. If you take what is left over, no, and then break-even is the point where you start earning rather than the point where the business is healthy.
Why gross margin rather than net?
Because fixed costs are what you are trying to cover. Using net margin would count overhead twice, once in the margin and once in the fixed costs.
What if my jobs vary wildly in size?
Split them. Run this once for service calls and once for installations, because one $12,000 job and forty $300 jobs behave nothing alike.
The formula
break-even jobs = fixed costs / (average job value x gross margin%)
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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.