Contractor Break-Even Calculator

Know the minimum price you can charge before you lose money on a job

Free tool by ThePocketBoss - enter your job costs and see exactly where break-even falls so you never underprice a project again.

Job Cost Inputs

$

Wages, labor burden, and subcontractor costs for this job

$

All materials, supplies, and equipment rental for this job

%

Insurance, vehicle, tools, office costs (typically 10-20%)

$

Your proposed price to the customer - see if it clears break-even

Pro Tip: Knowing your break-even point protects you from underbidding. If a customer pushes back on price, you know exactly how low you can go without losing money.

Break-Even Analysis

Break-Even Price
$0
Minimum price to avoid losing money
Labor Costs$3,000
Material Costs$2,000
Overhead (15%)$0
Total Cost$0
Profit/Loss
+$0
Margin at Price
0.0%
Job Status: Breaking Even
You're exactly at break-even. Add margin to make the job worth your time.

Understanding Break-Even for Contractors

What Is Break-Even?

Your break-even price is the absolute minimum you can charge on a job without losing money. It covers labor, materials, and your share of overhead - but leaves zero profit. Every dollar above break-even is money in your pocket.

Why Break-Even Matters for Small Contractors

When a customer pushes back on price, you need to know your floor. Without a clear break-even number, you might drop your price below cost and actually pay to do the work. This calculator gives you that hard number so you negotiate from a position of strength.

Common Costs Contractors Forget

  • Fuel and drive time to and from the job site
  • Wear and tear on tools and equipment
  • Callbacks and warranty work that eat into future time
  • Time writing the estimate for jobs you don't win
  • Insurance and licensing spread across every job

How ThePocketBoss Prevents Underpricing

ThePocketBoss tracks your actual costs on every job - labor hours, materials, and expenses. Over time, you build a library of real cost data that makes your break-even calculations more accurate, so you stop leaving money on the table.

Frequently Asked Questions

What does break-even mean for a contractor?

Break-even is the price at which your revenue exactly equals your costs. You don't make money, but you don't lose any either. It's your pricing floor.

How much above break-even should I price?

Most contractors aim for 15-25% profit margin above break-even. So if your break-even is $5,000, charge $5,900-$6,700 to build in profit and a buffer for surprises.

Should I ever take a job below break-even?

Rarely. Some contractors will do it for a high-value repeat customer or to fill a schedule gap, but consistently pricing below break-even will put you out of business.

What overhead percentage should I use?

Most small contractors have 10-20% overhead. Add up your annual fixed costs (insurance, vehicle, tools, office, software), divide by your annual revenue, and multiply by 100.

Stop Guessing. Start Knowing Your Numbers.

ThePocketBoss tracks every dollar on every job so you never price below break-even again.

Only $19.99/month • 14-day free trial • Cancel anytime