Solar & battery
Solar Installer Break-Even Calculator
Works the installs needed to cover an installer's fixed base.
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 contribution per install gives the installs needed per period. The fixed base in a solar business includes crews where they are salaried, vehicles, premises, licensing, insurance and the sales and design functions, which are substantial and do not reduce in a quiet month.
What moves the number
- Fixed costs including salaried crews and support functions.
- Contribution per install by job type.
- Average system size, which scales contribution.
- Seasonality in the local market.
Where this one goes wrong
Solar demand is both seasonal and sensitive to policy changes, which means an installer can face a sudden drop that a trade dependent on ongoing maintenance would not, and a high fixed base turns that into a serious problem quickly. Run break-even for a weak quarter rather than an average one. Contribution also varies enough by system size that an installer whose mix shifts toward smaller jobs needs more of them than the average suggests.
Before you quote
- Run break-even for a weak quarter, not an average one.
- Use contribution per install by job type and size.
- Account for policy-driven demand changes, not just seasonality.
Questions
About this calculator
Why is break-even risky for a solar installer?
Because demand is seasonal and sensitive to policy changes, so a sudden drop is possible in a way it is not for maintenance-driven trades. A high fixed base of salaried crews and support functions turns that into a problem quickly.
Does system size affect break-even?
Yes, because contribution scales with size. An installer whose mix shifts toward smaller residential jobs needs more installs than the average contribution suggests, and that shift can happen without anyone deciding it.
Which period should break-even be calculated for?
A weak one as well as an average one, since the fixed base continues regardless. Knowing the installs needed in the quietest quarter is what reveals whether the cost structure survives a downturn rather than just a normal year.
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 $21,500.
- Gross margin per job (%). Enter your own figure; the page starts at 30%.
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 | $26,000 |
| Average job value | $21,500 |
| Gross margin per job | 30% |
What comes out
| Result | Value |
|---|---|
| Jobs needed per month main result | 5 |
| Revenue needed per month | $107,500 |
| Gross profit per job | $6,450 |
| Jobs per working day | 0.2 |
You need 5 jobs a month, about 0.2 a working day, to cover $26,000 of fixed cost. That is $107,500 of revenue before the business earns anything.
How sensitive the answer is
Holding everything else steady and changing only monthly fixed costs, this is what happens to jobs needed per month. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Monthly fixed costs ($) | Jobs needed per month |
|---|---|
| $13,000 | 3 |
| $19,500 | 4 |
| $26,000 example above | 5 |
| $39,000 | 7 |
| $52,000 | 9 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Monthly fixed costs ($)
- Rent, office wages, insurance, vehicle payments, software, advertising.
- Average job value ($)
- A money amount, starting at $21,500.
- Gross margin per job (%)
- A percentage, between 0 and 95, starting at 30%.
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. |
A design still needs a site visit
Output and sizing figures use the assumptions you enter, not measured irradiance, shading or roof orientation at your address. Real production depends on all three, plus inverter behaviour and local interconnection rules.
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.