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 Professional Services
Pre-filled with real professional services industry benchmarks
Professional services firms - law practices, accounting firms, architecture studios, and similar - have a cost structure dominated by labor. Your largest expense is talent, and your break-even depends on utilization rate: the percentage of total available hours that are billed to clients. Most professional services firms need 60 to 70% utilization to break even and 75 to 85% to be profitable. This calculator helps you model your break-even based on average engagement size, overhead, and staffing costs.
Break-Even Calculator
Pre-filled with professional services industry defaults. Edit any field to use your real numbers.
Break-Even Units
56
Break-Even Revenue
$23,352
Contribution Margin
89.9%
Professional Services industry average margin: 90.0% gross margin with 10.0% COGS.