Break-Even Point Calculator
Find when your freelance business becomes profitable. Factor in fixed costs, variable costs, and pricing.
Rent, software, subscriptions, insurance — costs that stay the same
Cost per project/product — materials, subcontractors, etc.
What you charge clients per project/product
What you sell — projects, clients, products
Break-Even Point
Number of projects needed to cover all costs each month
40 projects
Break-Even Revenue
$4,000.00
Profit Margin
75.0%
Contribution per Unit
$75.00
Fixed Costs
$3,000.00/mo
| projects | Revenue | Total Costs | Profit |
|---|---|---|---|
| 20 | $2,000.00 | $3,500.00 | -$1,500.00 |
| 30 | $3,000.00 | $3,750.00 | -$750.00 |
| 40 | $4,000.00 | $4,000.00 | $0.00 |
| 50 | $5,000.00 | $4,250.00 | $750.00 |
| 60 | $6,000.00 | $4,500.00 | $1,500.00 |
| 80 | $8,000.00 | $5,000.00 | $3,000.00 |
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FreshBooks
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Xero
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We may earn a commission if you sign up through these links, at no extra cost to you.
Know Your Numbers
Every freelancer should know their break-even point. It tells you the minimum revenue needed to keep the lights on. Anything above that is profit. Knowing this number removes the anxiety of 'am I charging enough?' and turns pricing into a math problem.
Break-Even Formula
Break-Even Revenue = Fixed Costs ÷ (1 - Variable Cost Ratio). For example, if your monthly fixed costs are $3,000 and variable costs are 20% of revenue, you break even at $3,000 ÷ 0.80 = $3,750/month in revenue.
Frequently Asked Questions
What is a break-even point?
How do I lower my break-even point?
How often should I recalculate break-even?
Recommended Tools
FreshBooks
Invoicing and accounting software built for freelancers. #1 rated for ease of use.
QuickBooks Self-Employed
Track income, expenses, and mileage. Maximize tax deductions automatically.
Xero
Beautiful accounting software for small businesses and freelancers.
Wave
100% free invoicing and accounting. Perfect for solo freelancers.
Bonsai
Contracts, proposals, invoices, and accounting — all-in-one freelance suite.
Gusto
Payroll and benefits for freelancers who hire contractors or employees.
We may earn a commission if you sign up through these links, at no extra cost to you.
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