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Contractor glossary

Break-Even: Definition for Contractors

The point where revenue exactly covers all costs — no profit, no loss. Below it you lose money; above it you start to earn.

What is Break-Even?

Break-Even. The point where revenue exactly covers all costs — no profit, no loss. Below it you lose money; above it you start to earn.

Why it matters to your pricing

Knowing your break-even tells you the minimum a job must bring and how much work you need to cover overhead before profit begins.

This is a general educational definition, not financial or legal advice. Confirm anything regulated with your accountant or state board.
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