Tool 04 · Profit
Contractor Break-Even Revenue Calculator
Find the monthly sales level that covers fixed costs—and the higher target required to leave a chosen operating profit margin.
- Math shown
- Local calculation
- No signup
DecisionHow much revenue must the company produce this month?
Live calculator
Enter your numbers
Your result
Revenue for target margin$80,000.00
- Break-even revenue
- $57,142.86
- Contribution margin
- 35%
- Operating profit at target
- $8,000.00
Planning estimate based only on the values above. Inputs remain in this browser and are not submitted.
Method
How the calculation works
- Contribution margin = 1 − variable-cost share
- Break-even revenue = fixed cost ÷ contribution margin
- Target revenue = fixed cost ÷ (contribution margin − target operating margin)
Worked example
With $20,000 monthly fixed cost and 65% variable cost, break-even revenue is about $57,143. A 10% operating-margin target requires $80,000.
Read the full methodologyKnow the boundary
What this estimate does not decide
- A single variable-cost percentage simplifies job mix and seasonality.
- Cash-flow timing, debt service, tax, capital purchases, and owner distributions may require separate targets.
Questions
Break-even revenue FAQ
Why is target revenue higher than break-even?
Break-even leaves zero operating profit. The target adds enough revenue to preserve the entered margin after costs.
What if variable cost plus profit target reaches 100%?
The target is mathematically impossible because no revenue remains to cover fixed cost. Reduce one of the rates or change the cost model.