Break-even price is your floor, not your ideal price
Break-even tells you where modeled service profit reaches zero. A sustainable target normally needs room above that floor for profit, risk, reinvestment and the value of your expertise.
The ProfitTriage break-even formula
ProfitTriage allocates monthly business costs by each service's share of total work plus admin/client hours. If no hours are entered, it falls back to revenue share.
- Break-even per Client = (Direct Costs + Client Acquisition Costs + Allocated Business Costs) ÷ Number of Clients
- Average Revenue per Client = Revenue ÷ Number of Clients
- Recommended Price per Client = the higher of the modeled break-even price and the current average price adjusted by your selected possible price increase
What 'Recommended Price' means in ProfitTriage
It is a modeled threshold based on your own numbers. It is not an external market-price benchmark and it does not claim to know what a specific client will accept. The purpose is to prevent the software from suggesting a price below the modeled break-even level.
Use break-even together with time economics
A service can sit above break-even and still be a weak use of capacity. Compare the price floor with Profit per Hour, Profit per Client and Capacity Doctor before deciding what to quote.
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True hourly rate & workload · Profit per client · Raising prices & client risk · Break-even pricing