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Break-Even Calculator for a Booked Inspection

By Luis Johnson, founder of Lunere Digital. Published

Somebody quoted you a price per appointment and you want to know whether it's reasonable. The answer isn't an industry average, it's arithmetic on your shop: your job value, your margin, how many bookings actually happen and how many you close.

This gives you the ceiling. Anything under it pays, anything over it costs you money to be busy.

Your numbers, example inputs

What one booked inspection can cost you before it stops paying

Every value below is an example input. Nothing is sent anywhere, and nothing is saved.

%
%
%
x
Gross profit per signed job
$5,250
Inspections needed per signed job
4.8
Most you can pay and still hit 5.0x
$221
Break-even cost per booked inspection
$1,103

Why the show rate hurts more than the close rate

Drop your close rate from 30 to 25 percent and you need about one more inspection per job. Drop your show rate from 70 to 50 percent and you need nearly two more, and every one of those is a drive your estimator already paid for in fuel and an hour.

That's why the no-show rule matters more than the per-appointment price when you're comparing offers. An appointment that's refunded when nobody answers the door is a different product from one that's not, even at the same number.

The ceiling isn't the target

The break-even figure is where profit hits zero. Nobody should buy at that number. Pick the return you want in the last field and work to that instead, and leave yourself room for the months where the close rate dips.

What margin should I use?

Gross margin on the job, after materials and crew, before your overhead. If you don't know it to the point, run the calculator twice, once at your optimistic number and once five points below, and plan at the lower one.

Does this work for small jobs?

It works, and it usually shows that small-ticket work can't carry a per-appointment price at all. That's useful to know before you sign anything.

Read next

You Pay When an Inspection Actually Happens

Your crews do the repair work right, and now it is time to fill the calendar with homeowners ready to book.

  • Ads run in your own ad account, on your own card
  • A text at 60 seconds and a call at 5 minutes, 9 AM to 9 PM
  • Every homeowner owns the house and named a symptom before you see him
  • You pay per qualified inspection that happens, never per lead
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