Appliance Repair Break-Even Analysis: About $21K/Month

Fixed costs $3.0K/mo Base overhead

Contribution margin 78% After variable costs

Break-even revenue $3.8K/mo Revenue floor

Break-even timing Month 9 Model payback point

Break-even calculator

Test whether monthly revenue covers direct costs and fixed overhead, and see how close the shop is to break-even.

Lean Base Full

Monthly revenue Revenue is the top line that must cover direct costs and overhead. $ Slow month Busy month Variable expenses These rise with each job, including parts, fuel, and training. $ Lower costs Higher costs

Money available to cover fixed costs $15,600 $20,000 revenue - $4,400 variable expenses

Margin ratio

78%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead and payroll base the shop must cover. $ Lean overhead Heavier overhead

Break-even chart Revenue Total costs

Which appliance repair expenses stay fixed, and which move with sales?

Cost classification

Break-even is only useful if each expense behaves the right way in the model. With break-even in Month 9, misclassifying parts, fuel, or added staff can make the target look safer than it is.

Expense	Cost	Break-Even Treatment	Common Mistake
Office rent	Fixed	Use $1,500 per month from Month 1 through Month 60.	Lowering rent as sales dip, which understates the break-even gap.
Scheduling software	Fixed	Use $350 per month as base overhead in every month.	Treating core scheduling tools like a per-job fee.
Replacement parts and supplies	Variable	Use 15.0% of revenue in the first year, falling to 12.0% by the fifth year.	Treating parts inventory like rent instead of job-level spending.
Vehicle operating costs	Variable	Use 5.0% of revenue in the first year, falling to 4.0% by the fifth year.	Holding fuel and maintenance flat while job volume rises.
Technician training and certifications	Variable	Use 2.0% of revenue in the first year, easing to 1.5% by the fifth year.	Ignoring training load as more repair work is booked.
Paid ads	Semi-variable	Model the $12,000 first-year budget with CAC at $60, then adjust as acquisition efficiency improves.	Spreading ad spend like fixed rent without tying it to new customers.
Customer service dispatcher	Semi-fixed	Add capacity in steps: 0.5 FTE starts in Month 7, then grows to 2.0 FTE by the fifth year.	Adding dispatcher payroll too early, before call volume needs it.
Appliance technician staffing	Semi-fixed	Step staffing from 1.0 FTE in the first year to 5.0 FTE by the fifth year.	Modeling technician pay as fully variable per job instead of capacity-based.

How does break-even shift from a lean launch to a fuller appliance repair team?

Scenario table

Lean and base stay within Year 1 economics, but the full setup pushes break-even much higher because payroll and marketing scale faster than margin. I left out an owner-only solo case because it isn’t in the source payroll set.

Planning assumptions only; actual break-even moves with job mix, parts use, route density, and staffing efficiency.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch: owner and one technician	$19.0k	$4.2k	$14.8k	78%	$0	Break-even is close, so small booking drops hurt fast.
Base case: adds part-time dispatcher	$21.1k	$4.6k	$16.5k	78%	$0	Dispatcher cost is manageable, but steady lead flow still matters.
Full scale: Year 5 team build	$63.5k	$11.1k	$52.4k	82.5%	$0	Higher payroll needs tighter routing and more reliable demand.

What breaks the break-even plan for an appliance repair service?

Stress test

Base break-even sits around $211K on a 78% contribution margin. The plan gets fragile fast if CAC climbs above $60, callback work steals technician time, or fixed hires land before route density does.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$211K	$0 gap	At this load, any miss hurts.
Revenue shortfall	Booked revenue falls 10% below the break-even run rate.	$211K	$21K gap	A small demand miss leaves no cushion.
Fixed-cost increase	Add $10K in monthly overhead before route density supports it.	$224K	$13K gap	Second-vehicle or dispatcher spend comes too early.
Margin pressure	Variable expenses rise from 22% to 25%.	$220K	$9K gap	Parts, fuel, and callbacks leave less cash per job.
Combined pressure	Revenue falls 10%, overhead rises $10K, and variable expenses reach 25%.	$233K	$43K gap	Weak demand and heavier costs hit at the same time.

Should you add the second vehicle and more payroll yet?

Founder checklist

Test demand, pricing, parts access, and booking flow before you add the second vehicle or more payroll. Break-even lands in Month 9, but the model still needs about $806K of cash.

1Revenue path$211K/mo

Verify you can reach at least $211K in monthly revenue from dense local routes before adding fixed costs, because that is what the Month 9 break-even path needs.

2Price check$95/$80 hr

Confirm Year 1 pricing holds at $95 for repair work and $80 for diagnostic visits, because underpricing pushes the break-even date out fast.

3Parts terms$8K inventory

Lock supplier terms before you carry the $8K starting parts stock, so cash is not stuck in inventory that turns slowly or gets returned.

4Vehicle 2Month 7

Make sure current route density and technician load justify the second vehicle in Month 7, or the extra fixed cost will widen the gap to break-even.

5Cash cushion$806K min

Check that you can fund the $806K minimum cash need through Month 18, because Year 1 EBITDA is still negative and cash burn shows up before scale.

6CAC / callbacks$60 CAC / 78% CM

Track CAC against the $60 Year 1 target, add a dispatcher only when missed calls and bookings justify it, and set warranty callback rules so redo work does not push contribution margin, the profit left after direct costs, below 78%.