Break-Even Calculator
Find out exactly how many jobs you need each month to cover costs and hit your take-home target. Built for UK sole trader tradespeople.
Monthly Fixed Costs
Fuel, insurance, finance
Public liability, tools, etc.
Depreciation / finance
Income & Jobs
After materials
Includes income tax and Class 4 NI. Use 20–25% for most sole traders.
Your Results
That's 1.9 jobs per week, giving you 2.6 working days per job (based on 21 working days per month).
How to use these numbers
- Use your average job value after materials — don't include material costs in revenue unless you've already excluded them from costs.
- The tax rate here covers income tax + Class 4 NI. Most sole traders paying the basic rate should use 20–25%. Higher earners should use 30–35%.
- Fixed costs don't include materials — those vary per job. Focus on what you pay regardless of whether you're working.
- Revisit these numbers quarterly — costs creep up and your target take-home should too.
Need to work out your day rate? Try the Hourly Rate Calculator.
Frequently Asked Questions
What's the difference between break-even and my take-home target?▾
Break-even is the point at which your revenue covers your fixed costs — you're not making a profit, just keeping the lights on. Your take-home target is the amount you want to actually pay yourself after costs and tax.
Most tradespeople focus only on break-even, but you should always plan to the take-home target — otherwise you're running a hobby, not a business.
What tax rate should I use as a UK sole trader?▾
For 2025/26, most sole traders earning under £50,270 profit will pay 20% income tax (above the £12,570 personal allowance) plus 9% Class 4 NI — a combined effective rate of around 20–25% on total turnover after costs.
If your profit exceeds £50,270, you'll pay 40% income tax on the excess, pushing your effective rate toward 30–35%. Always confirm with your accountant for a precise figure.
Should I include materials in my average job value?▾
Only if you charge a markup on materials and want that margin reflected in your revenue. If you pass materials through at cost, exclude them from your average job value — use your labour and markup income only.
If you do include materials in job value, make sure your fixed costs don't accidentally include materials too, or you'll double-count and underestimate how many jobs you need.
Why do I need to add a 20–30% buffer?▾
Even the busiest tradespeople lose time to unpaid quotes, callbacks, snagging, bad weather, illness, and admin. Assuming every working day generates billable revenue is unrealistic.
A 25% buffer means if you're targeting 8 jobs/month, you should actually have capacity and pipeline for 10. It's not pessimism — it's how sustainable businesses work.