Chartered Financial Analyst and business consultant specializing in creative agencies and project-based small businesses.
How many design projects do you need to book to be profitable? Enter any three variables—Monthly Fixed Costs, Avg. Price per Project, Avg. Variable Cost per Project, or Breakeven Projects—to solve for the fourth.
Interior Design Breakeven Calculator
Interior Design Breakeven Formula
The breakeven formula for an interior designer finds the total number of projects (Q) you must complete each month for your total revenue to cover all your fixed and variable costs.
Q = F / (P – V)
Solve for Monthly Fixed Costs (F):
F = Q * (P – V)
Solve for Avg. Project Price (P):
P = (F / Q) + V
Solve for Avg. Variable Cost (V):
V = P – (F / Q)
Variables Explained
- Monthly Fixed Costs (F): Your recurring overhead. This includes studio rent, design software (e.g., AutoCAD, SketchUp), insurance, and marketing expenses.
- Avg. Price per Project (P): Your average design fee (your revenue) for a single project. **Important:** Do not include the client’s budget for furniture here, only your fee.
- Avg. Variable Cost per Project (V): The costs tied directly to one project. This includes fees for draftspeople, 3D renderers, or any materials you purchase directly for the project (not furniture).
- Breakeven Projects (Q): The total number of projects you must complete per month to reach $0 in profit.
Related Calculators
- Graphic Designer Breakeven Calculator
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- Project Breakeven Calculator
What is an Interior Designer’s Breakeven Point?
An **Interior Designer’s Breakeven Point** is the exact number of projects (Q) you must complete each month to cover all your business expenses. It’s the minimum number of clients you need to pay for your fixed “overhead” costs (like studio rent) and the variable “per-project” costs (like rendering fees).
**Fixed Costs (F)** are your consistent monthly overhead, whether you have 0 clients or 5. This includes your studio rent, design and admin software subscriptions, business insurance, and any fixed marketing retainers.
**Variable Costs (V)** are the costs incurred *only* when you take on a project. This includes fees for any freelance draftspeople or 3D renderers you hire per-project, as well as any site visit travel costs or sample materials you purchase for that specific client.
The **Contribution Margin** (P – V) is the profit from a single project that goes toward paying your fixed costs. If you charge (P) $6,000 for a project and your variable costs (V) are $500, your contribution margin is $5,500. This calculator finds how many $5,500 “profit chunks” you need to cover your total fixed costs (rent, software, etc.).
How to Calculate Interior Designer Breakeven (Example)
Let’s calculate the breakeven point for a small design studio.
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Identify Monthly Fixed Costs (F):
Your studio rent is $2,000. Software (AutoCAD, Ivy) is $300. Insurance is $150. Marketing is $550. Your total (F) = $3,000.
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Identify Avg. Price per Project (P):
You charge an average design fee of $5,000 per project.
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Identify Avg. Variable Cost per Project (V):
You pay a freelance renderer $300 and have $100 in sample/travel costs per project. Your total (V) = $400.
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Apply the Formula: Q = F / (P – V)
First, calculate the contribution margin: $5,000 (P) – $400 (V) = $4,600.
Next, divide the fixed costs by this margin:
Q = $3,000 / $4,600 = 0.65 -
Conclusion:
You must book 1 project (rounding up) just to cover your monthly business overhead. Every project after the first one contributes directly to your personal salary and profit.
Frequently Asked Questions (FAQ)
If you charge hourly, simply change your unit (Q) from “Projects” to “Billable Hours”. (P) becomes your “Avg. Hourly Rate” and (V) becomes your “Avg. Variable Cost per Hour” (which is likely very low, maybe just transaction fees).
No. If you charge a design fee *plus* a percentage of the furniture budget, only include your design fee and your commission percentage in (P). The furniture cost itself is not your revenue or your cost; it’s the client’s expense.
You can! If you want to find the number of projects needed to pay *both* your business overhead AND your personal salary, add your desired monthly salary (e.g., $6,000) to the (F) field. The calculator will then show you how many projects you need to *live*, not just to break even.
Enter your (F) (e.g., $3,000), your (V) per project (e.g., $400), and a *target* number of projects (Q) you can realistically handle per month (e.g., 2). The calculator will solve for (P), telling you the *minimum average price* (e.g., $1,900) you must charge per project to hit your goal.