Break-Even Calculator for Cleaning Businesses

Imagine that you've started your own business providing clean and organized spaces. You're working hard and investing resources to make it successful, but you're not sure when you'll start making a profit.

Managing a cleaning business can be a lot of work, from dealing with clients and employees to handling finances and buying supplies. That's why we've created a blog just for cleaning business owners like you. It's a place to find information, connect with other owners, and get help calculating your break-even point.

This tool will help you understand exactly when your business will start making a profit. Our goal is to provide helpful resources and tools that will empower you to make informed decisions and run a successful cleaning business.

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How Can Business Owners Use a Break-Even Calculator

It's no secret: you went into business for yourself for financial freedom. Whether you seek wealth or simply want the flexibility of working for yourself with a little extra after paying the bills, everything comes down to cash flow. In short, you should always know exactly how many cleaning jobs you need in order to be profitable.

The most common reason someone would need to perform a break-even analysis would be to build a business plan. There are two main types of business plans:

• The business plan you build for yourself. This plan may not be polished or elaborate. But it's critical to helping you get your "ducks in a row" and making good decisions in the face of financial uncertainty. In this plan, you'll want to forecast your success, count your costs, and build a plan to get from point A (today) to point B (success).
• The business plan you build to get funding. For cleaning businesses, it's unlikely you'll need millions of dollars to launch or expand your operations. But even micro-loans (loan requests for $200,000 or less) often require a business plan. The most important part of your business plan is the financial pro forma statements. Even if you're working with a bookkeeper or accountant, you'll need to know your break-even point.

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A Quick Guide to Cleaning Business Costs

First step: know your costs.

While you won't always know your exact costs down to the dollar and penny, you can get a reasonable estimate for every possible cost and still have a strong break-even projection. To help you get started, we've listed some of the most common costs a cleaning business will have.

PLEASE NOTE: All costs given below are estimates based on averages across the United States. It is critical that you consult your accountant and/or business attorney when planning your costs and financial statements.

Startup Costs

Home Cleaning

Your startup costs are simply what you will spend to officially launch your business. Here is a breakdown of what typical home cleaning business startup costs might look like. Keep in mind that every business is unique, and your costs may be higher or lower than these estimates.

You will NOT be using startup costs in your break-even calculation below. Additionally, you might want to secure a loan for your business strictly for covering your startup costs.

Commercial Cleaning

Most of the startup costs you have with a commercial cleaning company will be exactly the same as a home cleaning business, except that some of those costs could be much higher.

Expect to see the costs above to rise between 50% and 200% for a commercial operation. For example, you'll likely need more robust cleaning equipment, supplies, PPE, and licensing requirements.

Want MORE Jobs for your cleaning business? We can help. Click Here to learn more.

Fixed Costs

If a cost stays the same every month, then it is a Fixed Cost. Here is a list of common cleaning business fixed costs with ranged estimates.

Variable Costs

If a cost rises or falls based on how much work you're getting, then it is a Variable Cost. Here is a list of typical variable costs for a cleaning business.

Funding Costs

If you took out a loan or acquired investor capital to launch your business, you'll want to factor in those costs as well. 

For loans, you'll have a loan payment that includes a payment on the principal amount you owe, plus interest costs. If you are looking for a small business loan but don't know where to start, check out our blog Best Small Business Loans for Home Services.

If you partnered with investors, you may have agreed to an arrangement where you pay your partners regular dividends on your sales or profits. For the break-even calculator below, do your best to arrive at your average monthly dividend cost.

Setting Cleaning Business Prices and Profit Goals

In many ways, identifying all your costs is the most difficult part of small business financial planning. The next step, then, is to set your prices and profit goals.

These numbers will be key to making money, and a break-even calculator is your secret weapon to finding the balance between wealth and competition. Let's discuss these two things briefly before you begin playing with the calculator below.

Setting Prices

If you're completely new to price setting for cleaning services, we recommend checking out our blog How To Price Services for Your Cleaning Business.

But if you already have experience with setting your cleaning service prices, you can experiment with different pricing below. Keep in mind that our break-even calculator only works from your average price per service, so if you offer a wide variety of different cleaning services, you'll need to do some calculations to find your sale per customer.

Consider playing with the average price per cleaning job calculator below to help you with your break-even projections. Cells highlighted in red and blue are editable and your "Average price per cleaning job" will automatically update.

After calculating your average price per cleaning job, simply add that number to the corresponding cell in the break-even calculator below.

Setting Profit Goals

Remember that profits and sales are two different things.

Your sales are the total amount of money you bring in from the jobs you complete. By contrast, your profits are whatever money is left over after you subtract your costs from your sales.

This part is the most fun for you, because you get to decide how much take-home money you want each month. Think of this number as your salary. Decide what you want your salary to be as a cleaning business owner and divide that number by 12, and then you've arrived at your monthly profit goal.

Desired Annual Salary / 12 = Monthly Profit Goal

Cleaning Business Break-Even Calculator

The calculator below is interactive. Simply place your cost, pricing, and profit estimates in the gray boxes, and the "Jobs you need to book every month" will update automatically. There's no limit to how many times you need to run calculations, so enjoy!

Closing Thoughts

Whether you're on the verge of launching your new venture or are well into the growth phase of your cleaning business, remember, every successful journey is paved with ongoing learning, consistent effort, and resilience. The world needs your services—clean, tidy, and orderly spaces contribute greatly to our overall well-being and productivity.

So, as you navigate your unique path in this vital industry, always know that this blog, your dedicated companion in your entrepreneurial journey, will continue to be a reservoir of knowledge, a tool for planning, and a haven for insightful discussions. Bookmark this page, and be sure to check back often for updates and tips to guide your cleaning business to new heights. This cleaning business break-even calculator will ensure you have accurate pro forma financial statements for a top-notch business plan.

Here's to sparkling success in your cleaning venture! Remember, you're not just cleaning spaces—you're enhancing lives, one clean room at a time.