Free calculator for cleaning company owners
How many contracts does a cleaning business need to break even?
A cleaning contract pays for its own crew hours and supplies. What is left covers the office, vehicles, insurance and supervisors. Break-even is the number of average contracts that covers that fixed side.
Break-even point
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contracts 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
The starting numbers are an example for a cleaning business. Replace them with yours.
The worked example
Each contract brings in $2,500 a month and costs $1,500 to serve. That leaves $1,000 toward fixed costs of $30,000 a month. Divide one by the other and you need 30 contracts to break even. Every contract past that adds $1,000 to profit.
Ways to lower break-even in a cleaning business
- Win buildings close to the ones you already clean. Less drive time lowers the cost of each contract.
- Raise prices on contracts that need the most overtime.
- Move supervisors onto billable work during slower weeks.
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