The Job Shop Break-Even Rate Calculator

Do you know how much to charge to not lose money?

There are many factors involved in pricing, but unless you know your job shop's break-even rate, you could be losing money on every job. We've put together this easy calculator to help you figure out the minimum amount you need to charge to break even.

All data is secure and confidential and will never be shared, sold or provided to any third parties.
  • Please enter a number greater than or equal to 0.
    What does it cost to keep your lights on and employees paid? This is a fixed cost and doesn't change if your shop is really busy or having a slow period. It includes rent, utilities, salaries (including your own), employment taxes, insurance payments, recurring G&A, marketing and machine payments. Pro Tip: Your marketing expenses should factor into your annual operating expenses. Turning off marketing during slower months only prolongs the slow period.
  • Please enter a number greater than or equal to 0.
    How many production machines does your shop currently have? This should not include CMM or other non-production equipment.
  • Please enter a number from 0 to 100.
    Out of the total available machine hours in a year, how long can you expect your machines to stay running? It's generally impossible to keep machines running at 100% utilization - there will always be things like maintenance and setup that reduce utilization.

    Utilization Rate Reference
    • If your shop works weekdays and runs one shift (no lights out), your rate is probably around 10-15%
    • If your shop works weekdays and runs two shifts (no lights out), your rate is probably around 20-30%
    • If your shop works weekdays and runs three shifts (no lights out), your rate is probably around 40-60%
    • If your shop runs three shifts, runs lights out, or is set up so machines run unattended, your rate is probably around 60%+
    • If your shop's machines are always in use, your rate is probably around 90% (this is probably the max utilization if you are doing proper maintenance)
  • We'll send a copy of the results here.