Chartered Financial Analyst with 15+ years experience in small business finance and home services management.
Find your plumbing business’s breakeven point. Enter any three variables—Monthly Fixed Costs, Avg. Price per Service Call, Variable Cost per Call, or Breakeven Service Calls—to solve for the fourth.
Plumbing Breakeven Calculator
Plumbing Breakeven Formula
The breakeven formula for a plumbing business finds the total number of service calls (Q) you must complete each month for your total revenue to cover all fixed and variable costs.
Q = F / (P – V)
Solve for Monthly Fixed Costs (F):
F = Q * (P – V)
Solve for Avg. Price per Call (P):
P = (F / Q) + V
Solve for Variable Cost per Call (V):
V = P – (F / Q)
Variables Explained
- Monthly Fixed Costs (F): Your total, recurring monthly overhead. This includes van payments, business/auto insurance, shop rent, marketing, software, and office staff salaries.
- Avg. Price per Service Call (P): Your average revenue from a single customer job. This includes the call-out fee and any labor charges.
- Variable Cost per Call (V): The average cost directly tied to one job. This is primarily the cost of parts and materials used (pipes, fittings, fixtures) plus fuel for the van.
- Breakeven Service Calls (Q): The total number of jobs you need to complete each month to reach $0 in profit.
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What is a Plumber’s Breakeven Point?
A **Plumber’s Breakeven Point** is the exact number of service calls (Q) you must complete each month to cover all your business expenses. It is the minimum number of jobs required to pay for your fixed costs (like your van, insurance, and shop rent) and the variable costs (like parts and fuel) for each job.
**Fixed Costs (F)** are your consistent monthly overhead, even if you don’t get a single call. This is your largest financial hurdle and includes van payments, commercial auto and liability insurance, shop/storage rent, marketing (like Google Ads or Yelp), and any salaried office staff or dispatchers.
**Variable Costs (V)** are the costs incurred *only* when you are on a service call. This is primarily the wholesale cost of parts and materials (fittings, pipes, faucets, etc.) used for the job. It also includes the fuel to drive to/from the customer’s location and any credit card processing fees.
The **Contribution Margin** (P – V) is the profit from a single service call that goes toward paying your fixed costs. If you charge an average of $350 (P) for a service call and your parts/fuel (V) cost $100, your contribution margin is $250. This calculator finds how many $250 “profit chunks” you need to cover your total fixed costs.
How to Calculate Plumbing Breakeven (Example)
Let’s calculate the breakeven point for a plumbing business with one van.
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Identify Monthly Fixed Costs (F):
Your monthly van payment ($800), insurance ($1,200), shop rent ($1,000), marketing ($2,000), and software ($500) total $5,500.
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Identify Avg. Price per Call (P):
Between small drain clearings and larger repairs, your average service call revenue is $350.
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Identify Variable Cost per Call (V):
You calculate that the average job costs $100 in parts, materials, and fuel.
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Apply the Formula: Q = F / (P – V)
First, calculate the contribution margin per call: $350 (P) – $100 (V) = $250.
Next, divide the fixed costs by this margin:
Q = $5,500 / $250 = 22 -
Conclusion:
You must complete 22 service calls each month to cover all costs. Your 23rd service call of the month will be your first profitable job.
Frequently Asked Questions (FAQ)
Yes. If you are the owner-operator, you must pay yourself a fixed monthly salary (an “owner’s draw”). Include this in your (F) to ensure your business can actually support you. If you don’t, you aren’t truly breaking even.
If you pay your plumber a fixed salary, it’s a **Fixed Cost (F)**. If you pay them an hourly wage *only* for the time they are on a job (plus drive time), it is a **Variable Cost (V)**. Most businesses treat salaried employees as (F) and hourly-per-job employees as (V).
Look at your last month’s accounting. Take your **Total Revenue from services** and divide it by the **Total Number of Service Calls** you ran. This gives you a reliable average (P) and smooths out the differences between big and small jobs.
Enter your (F) (e.g., $5,500), your (V) (e.g., $100), and a *target* number of service calls (Q) you think you can do (e.g., 30). The calculator will solve for (P), telling you the *minimum average price* (e.g., $283.33) you must charge to hit your goal.