The break-even point is the revenue level at which total income equals total costs — meaning the business is neither making nor losing money. Calculating break-even requires knowing fixed costs (overhead), variable costs per job, and average job revenue. Knowing your break-even tells you exactly how many jobs per month you need to cover all expenses before profit begins.
A lawn care business has $6,000/month in fixed costs and averages $120 per mowing visit with $40 in variable costs. Their contribution margin is $80 per visit, so break-even is $6,000 / $80 = 75 visits per month.
CrewNest makes field service management simple. Start free and see for yourself.
Start Free
