Break-Even Hours Calculator
Calculate how many hours you must bill to cover your costs each month and each year.
Formula and sources updated · Data sources · 1View algorithm, constants and default inputs (JSON)
About this calculator
Break-even is fixed costs divided by the contribution each hour makes towards them, where contribution is the rate minus any variable cost per hour. Knowing the monthly number turns an abstract target into a concrete calendar commitment.
Worked example
calculated with the default values below
Monthly fixed costs 4,000 $ · Hourly rate 80 $/h · Variable cost per hour 5 $/h · Target monthly profit 3,000 $ · Hours you can work per month 160 h Contribution per hour 75.00 $ · Break-even hours per month 53.3 h · Hours for your profit target 93.3 h · Break-even hours per week 12.3 h · Feasible within your availability? Yes — 93 h fits inside your 160 h · Hours short per month 0.0 h
Method and assumptions
H = F/(R_h − C_h); T = H × 60 A finite break-even time exists only when hourly contribution R_h − C_h is positive. If it is zero or negative, the target cannot be reached. Break-even is fixed costs divided by the contribution each hour makes towards them, where contribution is the rate minus any variable cost per hour. Knowing the monthly number turns an abstract target into a concrete calendar commitment. The references explain definitions and methods; any extra preset must be checked against the assumptions on this page.
Data sources
The references explain definitions and methods; any extra preset must be checked against the assumptions on this page.
Disclaimer
These calculators give general date results. Public holidays, working-day conventions and time-zone rules are set locally and change, so confirm against the official calendar for anything legally or contractually binding.
Implementation source
This record describes the implementation used by this page. It is not independent validation. External references, when available, support only the stated formula or definition; estimates and custom rules retain their own assumptions.
Formula and variables
H = F/(R_h − C_h); T = H × 60
- H_BE
- Break-even hours per month
- FC
- Monthly fixed costs
- r
- Hourly billing rate
- v
- Variable cost per hour
- P
- Target monthly profit
- H_t
- Hours needed for target profit
A finite break-even time exists only when hourly contribution R_h − C_h is positive. If it is zero or negative, the target cannot be reached.
Frequently asked questions
What if the hourly rate does not cover variable cost?
Contribution per hour is the hourly rate minus variable cost per hour. If that value is zero or negative, billing more hours cannot cover fixed costs or reach the profit target. The calculator leaves the required hours blank and marks the scenario infeasible instead of reporting zero hours. With a positive contribution, it divides monthly costs (and target profit) by contribution per hour.
Which inputs and limits apply to Break-Even Hours Calculator?
Use the units shown beside each field. These are form limits, not recommended settings. Monthly fixed costs: 0–1,000,000 $; Hourly rate: 1–5,000 $/h; Variable cost per hour: 0–1,000 $/h; Target monthly profit: 0–1,000,000 $; Hours you can work per month: 1–500 h H = F/(R_h − C_h); T = H × 60 A finite break-even time exists only when hourly contribution R_h − C_h is positive. If it is zero or negative, the target cannot be reached. Break-even is fixed costs divided by the contribution each hour makes towards them, where contribution is the rate minus any variable cost per hour. Knowing the monthly number turns an abstract target into a concrete calendar commitment. The references explain definitions and methods; any extra preset must be checked against the assumptions on this page.
What is a complete worked example for Monthly fixed costs = 4,000 $; Hourly rate = 80 $/h?
Inputs: Monthly fixed costs = 4,000 $; Hourly rate = 80 $/h; Variable cost per hour = 5 $/h; Target monthly profit = 3,000 $; Hours you can work per month = 160 h. Calculation: H = F/(R_h − C_h); T = H × 60. Results: Contribution per hour = 75.00 $; Break-even hours per month = 53.3 h; Hours for your profit target = 93.3 h; Break-even hours per week = 12.3 h; Feasible within your availability? = Yes — 93 h fits inside your 160 h; Hours short per month = 0.0 h.