← Vendor rate break-even calculator
A supplier discount, a subcontractor rate, or an equipment lease often comes with a fixed monthly fee attached to a lower per-job price. Whether that trade is worth it depends entirely on your actual job volume — the same rate card can be a clear win at 30 jobs a month and a loss at 3.
Open the free vendor rate break-even calculator
Fixed fees hide at low volume. A vendor's monthly minimum or lease payment is spread across however many jobs you actually run — fewer jobs means a bigger slice of that fee lands on each one.
Break-even is a job count, not a percentage. The real question is not "is this rate lower," it's "how many jobs a month do I need to run before this rate is lower for me."
Some deals never pay off. If the new per-job cost is not actually lower than your current one, stacking a fixed fee on top makes every volume worse, not just low volume.
At 20 jobs a month with no fixed cost, a $120 per-job variable cost is $120 per job. A "Bulk supplier" offer adds a $100 monthly minimum but drops the per-job cost to $90 — $95 per job at 20 jobs a month, a $25-per-job saving worth $500 a month. That $100 minimum pays for itself at just 4 jobs a month, well under the 20 actually run. A "Subcontractor" alternative with no minimum and a flat $115 per job is already cheaper than the $120 baseline at any volume at all, with no break-even threshold to clear.
Compare the total monthly cost at your actual job volume, not the headline per-job rate. A vendor's fixed monthly fee plus its per-job cost, divided by your monthly jobs, gives a true cost per job you can compare directly against your current cost per job.
Break-even volume is the new fixed cost minus your current fixed cost, divided by the per-job savings the new rate offers. A $100 monthly minimum against a $30-per-job saving pays for itself at 4 jobs a month; below that volume the fixed fee costs more than the discount saves.
If the new variable cost per job is equal to or higher than your current one, no volume makes the switch pay off — the calculator reports it as 'not cheaper' rather than a break-even job count, because adding a fixed fee on top of an equal or higher per-job rate never turns a profit at any volume.