Chartered Financial Analyst with 15+ years experience in logistics, fleet management, and service business finance.
Find your moving company’s breakeven point. Enter any three variables—Monthly Fixed Costs, Avg. Price per Move, Variable Cost per Move, or Breakeven Moves—to solve for the fourth.
Moving Company Breakeven Calculator
Moving Company Breakeven Formula
The breakeven formula for a moving company finds the total number of moves (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 Move (P):
P = (F / Q) + V
Solve for Variable Cost per Move (V):
V = P – (F / Q)
Variables Explained
- Monthly Fixed Costs (F): Your total, recurring monthly overhead. This includes truck payments, vehicle/liability insurance, storage/office rent, marketing, and salaried office staff.
- Avg. Price per Move (P): Your average revenue from a single customer move.
- Variable Cost per Move (V): The average cost directly tied to one move. This includes hourly labor for the moving crew, fuel, moving supplies (boxes, tape, pads), and commissions.
- Breakeven Moves (Q): The total number of moves you need to complete each month to reach $0 in profit.
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What is a Moving Company’s Breakeven Point?
A **Moving Company’s Breakeven Point** is the exact number of paid moves (Q) your business must complete each month to cover all expenses. It’s the minimum number of jobs required to pay for your trucks, insurance, labor, and fuel. Any move you complete *after* hitting the breakeven number generates pure profit for the month.
**Fixed Costs (F)** are your most significant expense. This is your monthly overhead, whether you book 1 move or 100. It includes truck loan payments, commercial auto/cargo/liability insurance, storage yard or office rent, marketing costs (like Google Ads), and any salaried (non-hourly) staff.
**Variable Costs (V)** are the costs incurred *only* when you are on a job. The largest variable cost is the hourly labor for your moving crew. This also includes fuel for the truck for that specific job, packing materials (boxes, pads, tape), and any credit card processing fees.
The **Contribution Margin** (P – V) is the profit from a single move that goes toward paying your fixed costs. If your average move price is $800 (P) and your variable cost (labor, fuel, materials) is $250 (V), your contribution margin is $550. This calculator finds how many $550 “profit chunks” you need to cover your total fixed costs.
How to Calculate Moving Company Breakeven (Example)
Let’s calculate the breakeven point for a small moving company with two trucks.
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Identify Monthly Fixed Costs (F):
Your monthly truck payments ($2,000), insurance ($3,000), storage yard rent ($1,500), and marketing ($3,500) total $10,000.
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Identify Avg. Price per Move (P):
Between small apartment moves and larger house moves, your average job brings in $800.
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Identify Variable Cost per Move (V):
You calculate that the average move costs $250 in hourly labor for the crew, fuel, and packing materials.
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Apply the Formula: Q = F / (P – V)
First, calculate the contribution margin per move: $800 (P) – $250 (V) = $550.
Next, divide the fixed costs by this margin:
Q = $10,000 / $550 = 18.18 -
Conclusion:
You must complete 19 moves (rounding up) each month to cover all costs. Your 20th move of the month will be your first profitable job.
Frequently Asked Questions (FAQ)
It is almost always a **Variable Cost (V)** because movers are paid hourly, and they only work when there is a job. If you pay your movers a fixed *salary* regardless of how many jobs they do, then it would be a **Fixed Cost (F)**, but this is uncommon.
Fuel is a **Variable Cost (V)**. You should calculate the average fuel cost *per move* (or per hour of driving) and include that in your (V) estimate. Fuel for driving to the office is a fixed cost, but fuel for driving to/from a client’s house is variable.
Look at your last month’s finances. Take your **Total Revenue** and divide it by the **Total Number of Moves** you completed. This gives you a reliable average (P) to use for your calculations, blending both large and small jobs.
Enter your (F) (e.g., $10,000), your (V) (e.g., $250), and a *target* number of moves (Q) you believe you can book in a month (e.g., 30 moves). The calculator will solve for (P), telling you the *minimum average price* you must charge (e.g., $583.33) to hit your profit goal at that volume.