The formulas
- Contribution per hour = realized revenue per hour - variable cost per hour
- Break-even hours = fixed costs / contribution per hour
- Break-even revenue = break-even hours x realized revenue per hour
- Break-even utilization = break-even hours / available hours
How it works
Enter the realized rate, which is revenue collected per hour, not the standard rate. Fixed costs are costs that do not move with billable hours. When contribution per hour is zero or negative there is no break-even.
Illustrative figures only. Check the result against your firm's methodology before relying on it.
Common questions
What counts as variable cost per hour?
Costs that rise with each billable hour, such as hourly staff cost and per-hour direct expenses. Salaried staff cost that does not change with billable hours is a fixed cost.
Why use realized rather than standard rate?
Break-even depends on what you are paid, so realization has to be inside the rate.
Formulas on this page are the standard definitions.
Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.