# How do I calculate my break-even point?

Break-even point in units equals fixed costs divided by price per unit minus variable cost per unit, the formula the SBA gives. If your fixed costs are $1,200 a month, you charge $150 a job and each job has $70 of variable costs, you need $1,200 / $80 = 15 jobs a month to break even. ProfitDrawer's price per job calculator shows break-even jobs per month for your own numbers.

Definitions:

- **Fixed costs** stay the same whether you do 5 jobs or 50: insurance, phone, software, rent, loan payments.
- **Variable costs** rise with each job or item: materials, fuel, packaging, payment fees, and helper pay per job.
- **Price per unit** is what you charge for one job or product.

Break-even in sales dollars = fixed costs / ((price minus variable cost) / price). In the example, $1,200 / ($80 / $150) = $2,250 a month, which is the same as 15 jobs x $150.

Tips:

- Round up to whole jobs; 14.2 jobs means you need 15.
- Decide where your own pay goes. The price per job calculator treats your hourly pay as a per-job cost, so its break-even covers overhead and still pays you.
- Every job above break-even adds profit; below it, the month loses money.
- Recalculate when prices or costs change, such as a new insurance bill or a fuel price rise.

- Source: [Break-even point calculator (SBA)](https://www.sba.gov/breakevenpointcalculator)
- Updated: 2026-10-29
- Published: 2026-10-29
- Category: Pricing and profit
- Canonical: https://profitdrawer.com/answers/how-do-i-calculate-my-break-even-point.html
- Publisher: ProfitDrawer (https://profitdrawer.com)