Restoration
Restoration Break-Even Calculator
Works break-even for a restoration business, where the fixed costs include an idle fleet.
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 AuditHow the calculation works
Fixed costs divided by the gross profit per job gives the jobs needed each month to cover them. The fixed side in restoration is heavier than in most trades because the equipment fleet, the vehicles, the on-call capability and the certified core staff are all costs of being ready rather than costs of working. That makes break-even higher and makes a quiet month more painful, which is the structural fact behind how this industry prices emergency response.
What moves the number
- Equipment fleet cost, which accrues whether or not it is deployed.
- On-call capability, meaning staff available rather than billing.
- Average gross profit per job, which varies widely by loss type.
- Vehicle and facility costs, including storage for equipment and contents.
Where this one goes wrong
Average gross profit per job is a weak input in this trade because job sizes vary enormously: a small water loss and a large fire reconstruction are both one job. Running the break-even on a blended average hides whether you need two large losses or fifteen small ones, and the mix is what actually determines whether a month works. Splitting it by loss type is more useful. The other point is that readiness costs are fixed by choice: carrying more standby capacity raises break-even and shortens response time, and that is a deliberate positioning decision rather than an accident.
Before you quote
- Run break-even by loss type rather than on a blended average.
- Include on-call capability as a fixed cost.
- Treat standby capacity as a deliberate decision with a known cost.
Questions
About this calculator
Why is break-even high in restoration?
Because so much of the cost is readiness rather than work. The equipment fleet, vehicles, on-call staff and certifications all cost the same in a quiet month, and they exist so the company can respond within hours. That fixed base is what emergency pricing has to fund.
Is average profit per job a useful input?
Weakly, because job sizes vary enormously. A small water loss and a large fire reconstruction are both one job, so a blended average hides what mix a month actually needs. Running break-even separately by loss type gives a figure you can plan against.
Should I carry less standby capacity to lower break-even?
It lowers the fixed base and lengthens response time, which in an emergency trade affects how much work you win. It is a positioning decision with a measurable cost on both sides rather than a straightforward saving, and it is worth making deliberately.
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 $5,600.
- Gross margin per job (%). Enter your own figure; the page starts at 43%.
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 | $19,000 |
| Average job value | $5,600 |
| Gross margin per job | 43% |
What comes out
| Result | Value |
|---|---|
| Jobs needed per month main result | 8 |
| Revenue needed per month | $44,800 |
| Gross profit per job | $2,408 |
| Jobs per working day | 0.4 |
You need 8 jobs a month, about 0.4 a working day, to cover $19,000 of fixed cost. That is $44,800 of revenue before the business earns anything.
How sensitive the answer is
Holding everything else steady and changing only monthly fixed costs, this is what happens to jobs needed per month. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Monthly fixed costs ($) | Jobs needed per month |
|---|---|
| $9,500 | 4 |
| $14,250 | 6 |
| $19,000 example above | 8 |
| $28,500 | 12 |
| $38,000 | 16 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Monthly fixed costs ($)
- Rent, office wages, insurance, vehicle payments, software, advertising.
- Average job value ($)
- A money amount, starting at $5,600.
- Gross margin per job (%)
- A percentage, between 0 and 95, starting at 43%.
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. |
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.