Painting Business Breakeven Calculator

{
Reviewed by: David Chen, CFA
Chartered Financial Analyst with 15+ years experience in small business finance and home services management.

Find your painting business’s breakeven point. Enter any three variables—Monthly Fixed Costs, Avg. Price per Job, Variable Cost per Job, or Breakeven Jobs—to solve for the fourth.

Painting Business Breakeven Calculator

Painting Business Breakeven Formula

The breakeven formula for a painting business finds the total number of jobs (Q) you must complete each month for your total revenue to cover all fixed and variable costs.

Solve for Breakeven Jobs (Q):
Q = F / (P – V)

Solve for Monthly Fixed Costs (F):
F = Q * (P – V)

Solve for Avg. Price per Job (P):
P = (F / Q) + V

Solve for Variable Cost per Job (V):
V = P – (F / Q)
Formula Source: Investopedia

Variables Explained

  • Monthly Fixed Costs (F): Your total, recurring monthly overhead. This includes van/truck payments, business/auto insurance, license fees, shop/storage rent, marketing, software, and your own salary.
  • Avg. Price per Job (P): Your average revenue from a single customer job.
  • Variable Cost per Job (V): The average cost directly tied to one job. This is primarily the cost of paint, tape, brushes, rollers, drop cloths, and hourly labor wages (if you pay painters per job).
  • Breakeven Jobs (Q): The total number of jobs you need to complete each month to reach $0 in profit.

Related Calculators

What is a Painting Business Breakeven Point?

A **Painting Business Breakeven Point** is the exact number of jobs (Q) your company must complete each month to cover all expenses. It’s the minimum sales volume required to pay for your fixed “overhead” costs (like your van, insurance, and marketing) and the variable “job” costs (like paint and labor) for each job.

**Fixed Costs (F)** are your consistent monthly overhead, whether you paint 1 house or 10. This includes your van payment, commercial auto insurance, liability insurance, business licenses, shop/storage rent, marketing (like Angi or Google Ads), and your own fixed salary (owner’s draw).

**Variable Costs (V)** are the costs incurred *only* when you are actively working on a job. This is primarily the wholesale cost of materials (paint, primer, tape, drop cloths, rollers) and, most importantly, the wages of your painters if you pay them hourly for that specific job.

The **Contribution Margin** (P – V) is the profit from a single job that goes toward paying your fixed costs. If you charge an average of $2,500 (P) for a job and your paint/labor (V) cost $1,000, your contribution margin is $1,500. This calculator finds how many $1,500 “profit chunks” you need to cover your total fixed costs.

How to Calculate Painting Breakeven (Example)

Let’s calculate the breakeven point for a painting business with one van and one crew.

  1. Identify Monthly Fixed Costs (F):

    Your monthly van payment ($600), insurance ($1,000), storage ($400), marketing ($1,000), and owner’s salary ($4,000) total $7,000.

  2. Identify Avg. Price per Job (P):

    You specialize in standard residential interiors, and your average job price is $3,000.

  3. Identify Variable Cost per Job (V):

    You calculate that the average job costs $800 in paint/materials and $700 in hourly labor for your crew, for a total of $1,500.

  4. Apply the Formula: Q = F / (P – V)

    First, calculate the contribution margin per job: $3,000 (P) – $1,500 (V) = $1,500.
    Next, divide the fixed costs by this margin:
    Q = $7,000 / $1,500 = 4.67

  5. Conclusion:

    You must complete 5 jobs (rounding up) each month to cover all costs. The 6th job of the month will be your first profitable job.

Frequently Asked Questions (FAQ)

Is my crew’s labor a Fixed (F) or Variable (V) cost?

It depends. If you pay your painters a fixed weekly salary regardless of how much work there is, they are a **Fixed Cost (F)**. If you pay them an hourly wage *only* for the time they are on a job site, their wage is a **Variable Cost (V)**.

My jobs are all different sizes. How do I find my Avg. Price (P)?

Look at your last 3 months of accounting. Take your **Total Revenue** and divide it by the **Total Number of Jobs** you completed. This gives you a reliable average (P) and smooths out the differences between small and large jobs.

What about paint sprayers or other equipment?

If you *buy* a new sprayer, that is a capital expense, not part of this monthly calculation. However, if you *rent* equipment specifically for a single job, that rental fee is a **Variable Cost (V)** for that job. If you *lease* equipment long-term, the monthly lease payment is a **Fixed Cost (F)**.

How can this calculator help me bid on a job?

Enter your (F) (e.g., $7,000), your (V) for the new job (e.g., $1,500), and your target number of jobs (Q) for the month (e.g., 6). The calculator will solve for (P), telling you the *minimum average price* (e.g., $2,667) you need to charge across all jobs to hit your goal.

}

Leave a Reply

Your email address will not be published. Required fields are marked *