Chartered Financial Analyst and business consultant specializing in trade services and project-based businesses.
How many jobs do you need to complete to be profitable? Enter any three variables—Monthly Fixed Costs, Avg. Price per Job, Avg. Variable Cost per Job, or Breakeven Jobs—to solve for the fourth.
Landscaper Breakeven Calculator
Landscaper Breakeven Formula
The breakeven formula for a landscaper finds the total number of jobs (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. Job 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 truck payments, trailer payments, insurance, equipment storage/yard rent, and marketing costs.
- Avg. Price per Job (P): The average price a customer pays for a single landscaping job (e.g., a cleanup, mulch installation, or mowing).
- Avg. Variable Cost per Job (V): The costs tied directly to one job. This includes materials (mulch, plants, stone), fuel for trucks and mowers, and any hourly labor you pay your crew for that specific job.
- Breakeven Jobs (Q): The total number of jobs you must complete per month to reach $0 in profit.
Related Calculators
- Plumbing Breakeven Calculator
- Electrician Breakeven Calculator
- Painting Business Breakeven Calculator
- Cleaning Service Breakeven Calculator
What is a Landscaper’s Breakeven Point?
A **Landscaper’s Breakeven Point** is the exact number of jobs (Q) you need to 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 truck payments) and the variable “per-job” costs (like mulch and fuel).
**Fixed Costs (F)** are your consistent monthly overhead, whether you have 0 jobs or 50. This is primarily your truck and equipment loan payments, business insurance, vehicle insurance, and any software you use for scheduling or accounting.
**Variable Costs (V)** are the costs incurred *only* when you do a job. This is a critical number to calculate. It includes all materials (plants, mulch, stone), fuel for your mowers and truck, and any non-salaried labor (hourly crew wages) directly related to completing that one job.
The **Contribution Margin** (P – V) is the profit from a single job that goes toward paying your fixed costs. If you charge (P) $400 for a job and your variable costs (V) are $100, your contribution margin is $300. This calculator finds how many $300 “profit chunks” you need to cover your total fixed costs (truck payment, insurance, etc.).
How to Calculate Landscaper Breakeven (Example)
Let’s calculate the breakeven point for a small landscaping crew.
-
Identify Monthly Fixed Costs (F):
Your monthly truck/equipment payment is $800. Insurance is $400. Software/phone is $100. Total (F) = $1,300.
-
Identify Avg. Price per Job (P):
Between mowing and small projects, your average job price is $250.
-
Identify Avg. Variable Cost per Job (V):
For each job, you use $50 in materials (mulch/plants), $20 in fuel, and $80 in hourly labor. Your total (V) = $150.
-
Apply the Formula: Q = F / (P – V)
First, calculate the contribution margin: $250 (P) – $150 (V) = $100.
Next, divide the fixed costs by this margin:
Q = $1,300 / $100 = 13 -
Conclusion:
You must complete 13 jobs just to cover your monthly business overhead. The 14th job, and every job after, is your personal profit.
Frequently Asked Questions (FAQ)
This model works for both. A recurring mowing client can be one “job”. If you have 10 mowing clients who pay $200/month, that’s 10 jobs at (P)$200. You would then need to find your (V) for those 10 jobs.
You can! If you want to find the number of jobs needed to pay *both* your overhead AND your personal salary, add your desired monthly salary (e.g., $5,000) to the (F) field. The calculator will then show you how many jobs you need to *live*, not just to break even.
You must find your *average* (P) and (V). If you did one job for $100 (with $20 V-Cost) and one job for $900 (with $300 V-Cost), your average (P) is $500 and your average (V) is $160.
Enter your (F) (e.g., $1,300), your (V) per job (e.g., $150), and a *target* number of jobs (Q) you can do in a month (e.g., 20). The calculator will solve for (P), telling you the *minimum average price* (e.g., $215) you must charge per job to hit your goal.