The break-even point is the revenue or unit volume where your total income equals total costs, no profit, no loss. Calculate it by dividing your total fixed costs by your gross profit margin (for revenue break-even) or by your contribution margin per unit (for unit break-even). Every small business owner should know this number before making any pricing, hiring, or expansion decision.
Break-Even Calculator for HVAC
Pre-filled with real hvac industry benchmarks
HVAC businesses operate with a seasonal revenue pattern - heating season and cooling season create peaks, while spring and fall can be slow. Your break-even must account for this seasonality: you need peak-season profits to carry you through slow months. Parts and materials typically run 25 to 35% of job revenue, with labor at 25 to 30%. Maintenance agreements provide predictable recurring revenue that lowers your effective break-even. This calculator uses typical HVAC company benchmarks.
Break-Even Calculator
Pre-filled with hvac industry defaults. Edit any field to use your real numbers.
Break-Even Units
49
Break-Even Revenue
$24,500
Contribution Margin
70.0%
HVAC industry average margin: 70.0% gross margin with 30.0% COGS.