TCF834: Contractor Business Math: How to Calculate Your Breakeven Point

From The Contractor Fight with Tom Reber Tom Reber

Many contractors think their breakeven point is simply their monthly overhead amount, but that is incorrect. Continuing the basics of the contractor business math series, Tom discusses how to correctly calculate your breakeven point as a contractor to avoid financial struggles.

In this episode, Tom discusses:

How to calculate the breakeven point
Difference between breakeven point and overhead costs
Examples to show the difference in breakeven revenue at 30%, 40%, and 50% gross profits
How gross profit impacts the number of jobs and leads needed each month to reach breakeven
The importance of knowing your numbers

Resources:

💰 You didn’t become a contractor to struggle financially. Download our worksheet and start calculating a 50% gross profit on every job. It’s time to get your shit together! https://thecontractorfight.com/50/

💸 Grab your copy of our FREE Contractors Guide to Spotting Cheap Prospects here: https://thecontractorfight.com/cheap

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