Break-even is fixed costs divided by contribution per unit. It is a single number that tells you how much work must happen before you earn anything, and most owners have never calculated it.
A worked example
Fixed costs per month $12,000
Average project price $4,000
Variable cost per project $1,600 (contractor + tools)
Contribution per project $2,400
Break-even = 12,000 / 2,400 = 5 projects a month
Once you know it is five, everything gets more concrete. A sixth project is not "more revenue," it is the first project of the month that is actually yours. A month with four is not slightly bad, it is a loss.
Three levers, not one
- Raise price: the fastest lever, because it flows straight into contribution.
- Cut variable cost: helps every future sale, usually slower to move.
- Cut fixed cost: lowers the bar immediately, but shrinks capacity.
Notice that selling more is not on the list. Volume is how you use the levers, not a lever itself — and it is the only one that costs you time you may not have.
Try it
Calculate your break-even in units and in revenue. Then recalculate it with a 10% price increase. The gap between those two numbers is the strongest argument for pricing you will ever see.