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

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


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