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Service business break-even calculator

Find the monthly sales and billable hours you need to cover your costs. Check whether that target fits the hours you expect to sell.

Free calculator and workbook · no signup

Check your monthly numbers

Use one currency and one effective hourly rate. Enter amounts before sales tax, using a decimal point and up to two decimal places.

Costs, rate and available hours

Costs you incur even without work, such as insurance or software. 0 to 100,000.

What you charge for one billable hour. 0.01 to 10,000.

Costs that rise as you deliver work, such as subcontractor time. 0 to 10,000.

Hours you expect to bill after time off and admin. 0 to 744.

Your figures stay in your browser. We don’t save your inputs or include them in analytics.

Try another month in the workbook

Edit the amber cells in Excel or import the file into Google Sheets. Save a copy for each month or rate you want to compare. The workbook stays on your device unless you upload it.

Download break-even workbook (XLSX)

Example: you can bill 25 hours this month

A design studio has USD 2,400 in fixed monthly costs. It charges USD 100 per hour and spends USD 20 in direct costs for each billable hour. That leaves USD 80 per hour to cover overhead.

Break-even takes 30 billable hours and USD 3,000 in sales. At 25 hours, the studio brings in USD 2,500 and spends USD 500 on delivery. That leaves USD 2,000 for overhead, a USD 400 shortfall. Check whether you can sell more hours, adjust your rate or reduce costs before relying on the plan.

How to use the result

  1. Subtract direct cost per billable hour from your hourly rate.
  2. Divide monthly fixed costs by what’s left per hour. Round up to 0.01 hours.
  3. Multiply those hours by your hourly rate and round up to the cent.
  4. Compare the hours with your plan. At planned hours, subtract both delivery costs and overhead to check the balance.

The estimate assumes a steady rate and direct cost for the hours you model. If your prices or service mix change, use separate scenarios. It doesn’t predict demand, tax or when clients pay. This is a planning estimate, not accounting, tax or legal advice. See the SBA break-even formula.

Does breaking even mean making 100% profit?

Breaking even means sales cover the costs you included, leaving zero profit on that basis. A gain equal to your original costs is above break-even.

What if my hourly rate barely covers delivery?

If the rate equals direct cost, each hour contributes nothing to overhead. If the rate is lower, each hour adds a loss. Review your price or delivery cost before setting an hours target.

Should I include what I pay myself?

If you want your sales to cover a chosen amount for your own pay, include it in the plan. Count it once: as fixed monthly pay or as a cost per billable hour, depending on how you model it. The result only covers costs you entered.

Does this tell me when I can pay my bills?

This compares sales and costs for a month. Payment delays can still leave you short of cash. Use a dated forecast to see when receipts and bills fall due.

Work out your available client hours or check payment dates with the 13-week cash flow forecast.

Compare your plan with the hours you actually bill

Track client work in TimeLodge, then prepare invoices from the hours you’ve recorded.

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