Solo operator
$37k–$68k/mo revenue target
- Overhead
- $8k–$16k
- Owner pay
- $6k–$10k
- Gross margin
- 38–48%
Good fit for plumbers, electricians, painters, cleaners, and handymen who need owner pay protected before chasing crew growth.
Finance planner
Calculate the contractor break-even target that pays the owner first.
Most contractors ask, “How much revenue do I need?” The better question is: “How much revenue covers overhead, pays me properly, protects margin, and creates enough booked jobs without panic?”
Formula
Monthly revenue target = (overhead + owner pay + debt cushion) ÷ gross margin
If your gross margin is 40%, every $1 of overhead needs $2.50 of revenue. That is why “just book more jobs” fails when labor burden, material cost, and callbacks are not priced correctly.
- Overhead: trucks, insurance, software, rent, phones, admin, marketing, licensing, bookkeeping.
- Owner pay: salary the business must support before profit distributions.
- Debt cushion: monthly repayment, tax reserve, and slow-season cash buffer.
- Gross margin: revenue left after direct labor, materials, permits, subs, and job-specific costs.
Contractor owner-pay target calculator
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Contractor revenue targets by owner-pay stage
Use these contractor break-even ranges as planning guardrails, not promises. The right target depends on your trade, crew productivity, callbacks, labor burden, market pricing, and how much admin the owner still carries.
One crew plus owner
$74k–$131k/mo revenue target
- Overhead
- $18k–$32k
- Owner pay
- $8k–$14k
- Gross margin
- 35–45%
Use this when the owner still sells, estimates, or supervises most jobs but payroll is now a fixed commitment.
Two to three crews
$156k–$281k/mo revenue target
- Overhead
- $38k–$70k
- Owner pay
- $12k–$20k
- Gross margin
- 32–42%
At this stage the target should include dispatch, admin, callbacks, vehicle debt, software, and a marketing budget that keeps crews fed.
Next steps