Tools

Find your real breakeven rate before your next quote.

67% of home service business owners have never run this calculation. It takes 3 minutes and could change how you price every job this year.

Your numbers.

01 · Fixed overhead · 02 · Labor · 03 · Capacity

01 · Fixed overhead

Every recurring cost your business pays whether you work or not. Be honest — this is the step most contractors skip, and it's exactly why they underprice.

Vehicle payments / leases$/moInclude all trucks, vans, trailersVehicle insurance & registration$/moCommercial auto — often missedFuel (average monthly)$/moTools, equipment & maintenance$/moReplacement, repairs, batteriesGeneral liability insurance$/moLicensing, bonds, permits$/moAmortize annual fees monthlySoftware subscriptions$/moCRM, scheduling, accounting, etc.Phone, internet, utilities$/moMarketing & advertising$/moAds, Angi, website, SEOOffice / admin staff$/moIf owner does admin, enter $0 (counted in labor)Other fixed overhead$/moRent, storage, anything else

Monthly overhead $6,250

02 · Labor

Include every dollar that goes out the door for people — wages, taxes, and benefits. Most owners forget that labor burden adds 18–25% on top of wages alone.

Total gross wages per month$/moAll employees including yourself if you take a wageOwner's draw (if not in wages)$/moPrice your own time at market rate — this is criticalPayroll taxes$/moLeave blank to auto-calculate at 10% of wagesWorkers' compensation$/moVaries by trade — typically 4–8% of wagesHealth benefits / PTO accrual$/mo

Monthly labor $27,400

03 · Billable capacity

How many hours can you actually bill — and what margin do you need to stay healthy and grow?

Number of billable technicianspeopleInclude yourself if you do field workWorking days per monthdaysHours on the clock per dayhrsBillable efficiency70%Clock hours × this % = billable hours. = 370 billable hours / monthTarget net margin20%Above all costs including owner's salary. Healthy home service businesses target 15–25% net.Your current average billing rate/hrWhat you actually charge per billable hour on average

What you have to charge.

The floor

$114/hr

Close. $4/hr below your full target rate.

Monthly overhead	$6,250
Monthly labor	$27,400
Billable hours	370 hrs
Breakeven rate	$91/hr
Target margin	20%
Annual revenue needed	$504,750

What makes up your billing rate

Overhead$17/hr
Labor$74/hr
Profit$23/hr

If you changed one thing

Raise rates 10%	$121/hr Raising rates 10% would close your pricing gap.
Add a technician	$108/hr Adding a tech lowers your required rate — overhead spreads across more billable hours.
Cut overhead 15%	$111/hr Cutting fixed overhead 15% ($938/mo) drops your required rate by $3/hr.
The annual gap	$16,350 Annual revenue you're leaving on the table by charging below your target rate.

After the number

Now you know your floor. Let's build above it.

Your breakeven rate tells you the minimum. An Operations Audit tells you how to build profitable, predictable revenue above it — with a connected system that tracks every dollar from job to bank account.

One hour. No obligation. The written findings are yours to keep.

Book an Operations Audit →