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How many customers do you need to break even?

For a service business, break-even is easiest to read as a customer count. Below it you lose money every month. Above it, each customer adds what is left after serving them.

Break-even point
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customers a month to cover every cost
Profit at today's level
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per month, before owner pay
Cushion above break-even
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how many you could lose and still cover costs

Common questions

How do I calculate break-even for a service business?

Take each customer's monthly revenue and subtract the cost of serving them. Divide your fixed costs by what is left. The answer is how many customers cover every cost.

What counts as a fixed cost?

Anything you pay whether or not you have the next customer. Rent, salaried staff, insurance, loans and software. Crew wages and supplies for each job are not fixed.

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